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Retirement Account

A flexible personal pension which allows your client to save through single or regular payments, make transfers from other pensions, chose from a wide range of funds and access benefits flexibly.

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  • Helps your client save for retirement in a tax-efficient way using either a Pension Savings Account or a Pension Income Account.

  • This product provides flexibility for your client and offers a wide range of investment choices.

  • This product allows single or regular contributions and withdrawals or the ability to take a lump sum.

  • They can also transfer in other pensions they may have.

  • The ability to choose from a wide range of investment options, including our PruFund range of funds and hundreds of collective funds within one pension.

  • Contributions can be made by the client, their employer, a third party or by transferring money from an existing pension scheme.

  • It offers your client flexibility to change their retirement income in the future if their circumstances change.

  • Your client can monitor their Retirement Account online at any time by registering for our Retirement Account Online Services.

 

  • Withdrawals could deplete the fund before death, your client could run out of money in their lifetime. 

  • The value of your client’s investment could go down as well as up. They may not get back what they have paid in.

  • Inflation will affect the value of the money your client gets back.

  • If the total of charges and costs are higher than the investment growth, your client's plan will fall in value. Charges may also increase in future. 

  • The amount of income your client takes could push them into a higher tax bracket.

  • If your client is transferring their pension to us, there is no guarantee that the overall amount they receive will be as high as what they could have received from their previous provider, also any guaranteed rates that they had with their previous provider will not be transferred.

 

The Retirement Account has two parts, the Pension Savings Account and the Pension Income Account, and your clients can choose to invest in either or both of these parts. We also offer the flexibility to phase money from the Pension Savings Account to the Pension Income Account.

Pension Savings Account

  • Contributions and transfers are paid in and invested in this account, with the exception of drawdown to drawdown transfers which are invested straight into the Pension Income Account.

  • Taken from the normal minimum pension age (currently 55), UFPLS (Uncrystallised Funds Pension Lump Sums) can be withdrawn from the Pension Savings Account.

  • Every time your client takes an UFPLS, 25% will usually be tax-free and the rest of the money will be treated as a source of income and taxed accordingly.
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Pension Income Account

  • Investments from the Pension Savings Account are moved to this account to access drawdown and tax-free cash.

  • Up to 25% of the amount can usually be taken tax-free, then the rest can be taken as taxable income if required.

  • Transfers from other drawdown plans are paid in and invested here.

Drawdown allows clients to take a tax-free lump sum and income payments directly from their pension fund, thereby allowing potential investment growth on the remaining fund.

Clients can normally start taking pensions benefits from drawdown from age 55.

Our Retirement Account offers two drawdown options:

Flexi-Access Drawdown

  • A form of drawdown which allows you to take an unlimited amount of income or lump sums from a pension fund.

Capped Income Drawdown

  • Restrictions apply to the amount of income that can be withdrawn.

  • Capped Drawdown is no longer available for new arrangements and can only be taken if transferring from an existing Capped Drawdown arrangement.

  • Our Capped Drawdown GAD Calculator can be used to find out the monthly gilt yield and impact of this on the amount of income that can be taken from income drawdown as well as seeing historic gilt yields in a chart and table format.

  • Three yearly income reviews are required.

Benefits of Drawdown

  • Currently up to 25% tax-free lump sum can be taken, and without starting to take a regular income.

  • Client control over investment - may be able to take an increasing income if investment grows, but equally, this may be reduced if it falls in value.

  • Investment continuity for clients moving from our Pension Savings Account into Pension Income Account.

  • Pension pots or drawdown plans held with other providers can be transferred across quickly and efficiently.

Please remember that your client's fund could be depleted before their death and they may run out of money in their lifetime if they continue to take income from their investment. 

Taxation is dependent on your client's individual circumstances and can change in the future.

 

The Retirement Account offers a wide range of investment choices. Your client can hold any combination of investment options, including our established PruFund range of funds and hundreds of collective funds, within one pension.

Remember that the value of your client’s investment can go down as well as up. They may not get back what they have paid in.

PruFund range of funds

The PruFund range of funds aim to grow your client's money whilst smoothing the investment journey. For more information on the PruFund funds, see our PruFund Fund Guide (PDF).

For Expected Growth Rates (EGR) and historical performance, check our EGR hub.

PruFund Planet Fund Range

A choice of five risk-managed, multi-asset funds each with its own risk profile, actively managed by M&G's Treasury and Investment Office (T&IO). PruFund Planet enables advisers to design an investment strategy that suits the client’s appetite for risk and reward, whilst helping to ensure their money works to deliver positive environmental and societal outcomes.

More about PruFund Planet Fund Range

Prudential Risk Managed Active Range

A choice of five risk-managed multi-asset collective funds each with its own risk profile, investing at least 70% in active collective investments. M&G Investment Management Ltd, part of M&G plc, are the investment managers for the Risk Managed Active funds. They make the relevant adjustments to the portfolio based on M&G Treasury & Investment Office recommendations.

More about the Risk Managed Active Range

Prudential Risk Managed Passive Range

A choice of five risk-managed multi-asset collective funds each with its own risk profile, investing at least 70% in passive collective investments. M&G Investment Management Ltd, part of M&G plc, are the investment managers for the Risk Managed Passive funds. They make the relevant adjustments to the portfolio based on M&G Treasury & Investment Office recommendations.

More about the Risk Managed Passive Range

Environmental, Social and Governance (ESG) Funds

We’ve increased the choice of funds available on Retirement Account by adding a range of ESG funds (including the PruFund Planet Fund Range detailed above) which invest in asset classes such as equities, fixed income, property and alternatives, from a range of M&G and external fund managers.

Within the range there are both sustainable and climate focused funds managed by M&G, meeting high ESG standards and investing in companies driven by sustainability.

More about the ESG Funds

Collective Funds

Your client can also access hundreds of collective investment funds from a variety of fund management groups, allowing them to choose funds with different managers or management approaches.

We provide a fund filtering tool, fund fact sheets and fund reporting documents to help you review and suggest the right investments for your client.


Other investment options

For even more choice, we also give access to other investment options, such as direct investment in UK stocks and shares, investment trusts and exchange traded funds through Stocktrade.

There are a number of charges which may apply to the Prudential Retirement Account:

  • product charge

  • investment charges and costs

  • trading and nominees charges

  • guarantee charge

  • adviser charges
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There is more information on all of the applicable charges below. Alternatively, download our Fast Facts (PDF) document.