Prudential Retirement Account

If you are looking for flexibility from your pension then look no further than the Prudential Retirement Account. A single product that allows you to save for your retirement in a tax-efficient way and provides many flexible options when you're ready to take money out.

Choice and flexibility in one place

Save in a tax-efficient way

The money you pay into your account benefits from tax relief. Unlike some other providers, we will automatically add the basic rate tax relief into your account each month for contributions you make.

Flexible ways to take your money

From age 55, you can start taking money from your account to suit your needs - whether it's to manage the amount of tax you pay or simply to spend as you need.

A range of investment options to pick from

How your money is invested can have a large impact on the value of your pension fund. We have a range of funds to choose from - each with different levels of investment risk.

Check in on your pension online

No need to wait for your annual statement or contact your adviser to see the balance in your pension pot. Find out more about the benefits of our new Online Service and register today.

The Prudential Retirement Account has been designed to meet your needs as you plan for later life. How we approach retirement has changed, for many people it's no longer an event but a change in how we work and live.

That change needs increased flexibility in how you save and how you access your money. The Prudential Retirement Account helps give you that.

While saving for your retirement, your contributions will be held in one part of the Retirement Account which we call the Pension Savings Account.

You can also transfer money from other pensions, including funds already in drawdown. You must consider whether this is the right decision for you, and be aware of the risks associated with this product. Some of the risks are:

  • There may be a penalty to move from your existing scheme.
  • You may have valuable guarantees on your policy that you might lose if you transfer.
  • The value of your investment can go down as well as up so you might get back less than you put in.

For more information, please read the Key Features Document. There may be options available with your existing plan that might equally meet your needs so you should speak to a financial adviser before you make a decision.

Making contributions into your Pension Savings Account is easy and flexible:

  • You can choose to make regular monthly or annual contributions.
  • Your employer or anyone else can pay contributions into the account.
  • You can opt for your regular payments to automatically increase each year.
  • You have the freedom to - stop, start, increase or decrease your contributions to suit your needs.
  • Choose which funds to invest your money in and change them over time as your needs change.

From age 55, you can start to take benefits from your pension pot.

You have the flexibility to take as much or as little of your money as you choose. This can help you manage the tax you pay and potentially keep you in a lower tax band.

And if you decide to stop taking an income you can re-start it again in the future if your needs change.

Choosing where to invest your money is an important decision. The Prudential Retirement Account gives you the freedom and choice to select the investment fund that matches your needs.

There is a link between the amount of risk an investor is prepared to take, and the potential rewards they seek to gain.

The key to successful investing is to find the correct balance between potential reward and the level of investment risk you are comfortable with.

Although money may be more secure in a lower-risk investment, it is also unlikely to grow significantly. Whereas investing in a higher-risk investment, means the potential rewards may be greater but so is the potential for loss.

  • The Prudential Retirement Account is only available from your financial adviser.
  • There is a limit to the amount you can contribute to your pension and still receive tax relief.
  • Taking a single lump sum or income could impact the tax bracket you are in, meaning you might pay more tax than you expected.
  • If you take out too much money, you may run out and need to rely on other income.
  • You will still have to pay charges on the money left invested.
  • If you have a defined contribution scheme (where you and/or your employer make regular contributions), taking money out of your pension pot sometimes triggers a limit on how much can be paid into it in the future. This is called the Money Purchase Annual Allowance.
  • Transfers and contributions from your employer do not qualify for tax relief.
  • For single contributions and transfers, we will process your investment instruction within 3 business days of the date we have received the money and all the documentation we require.
  • For regular contributions, we will process your investment instruction within 6 business days of receiving the direct debit instruction and all other required documentation (to allow time for funds to clear through the banking system).
  • The rate at which regular contributions increase will be in line with the consumer price index or a fixed rate of your choice.
  • Adviser and non-PruFund product charges are paid from the cash account.
  • Charges for managing the plan will continue to be taken if you stop making payments in.
  • If you take out too much money, you may run out and need to rely on other income.
  • You will still have to pay charges on the money left invested.
  • From time to time, changes can occur on funds you invest in – for example, fund mergers or changes in objectives. These are called "fund events".
  •  If there are any changes to funds we will contact you.

Before deciding what to do with your pension we recommend you speak to Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement.

You can find out more on their website or by calling 0800 280 8880 to book a telephone or face-to-face appointment.

It's important that you remember that your money is invested. The value of your investment can go down as well as up so you might not get back the amount you put in. It's also important to remember that the deductions for the costs and charges involved will have an impact on the amount you have invested.

You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future.

When deciding what to do with your pension pot you should be aware that different providers offer different products that may be more suited to your individual circumstances. Each product option could also have different tax implications. Their rates, investment funds, charges and terms may also be different. This is why it's important to shop around - so whatever you decide to do, it's the right decision for you.

How to apply?

If you're interested in the Prudential Retirement Account please speak to your financial adviser. If you don’t have a financial adviser, you can find one at unbiased.co.uk.

You can make an appointment with an adviser from M&G Wealth Advice. We offer restricted advice.

Book an appointment

Managing your account

Join those already checking in on their Retirement Account online. Its quick and easy to register.

Visit our existing customer product page or call us on

0345 268 0488

Monday to Friday, 8.30am-5:30pm.

Register today

Where can I learn more?

Unbiased

Visit unbiased.co.uk, the UK's largest selection for professional advisers, to search for an independent financial adviser in your area.

Pension wise

Visit moneyhelper.org.uk a free impartial guidance service from the government to help you understand your options at retirement.

HMRC

Visit www.hmrc.gov.uk to find out more information on tax rules and legislation which may affect you and your pension plans.