Aon OnePlan

You can usually take up to 25% of your pension savings as a tax-free cash lump sum.
(See the 'Your pension and tax' page for details of the limits that apply.)

You can then use the rest of your Aon OnePlan savings to provide you with one or more of the following . . .

You can take a flexible income from your pension savings as and when you wish and continue investing the rest.

You’ll have the option to transfer to a drawdown arrangement of your choice. However, the Trustees have facilitated access for members to use the Income Drawdown arrangement in the Aon MasterTrust. More information about this will be provided in the lead-up to retirement.

You can buy an insurance policy known as an ‘annuity’ from a pension provider. This will typically provide a regular, guaranteed income for life.

There are lots of different types of annuities available. You can choose the type that’s most suitable for you and ‘shop around’ to get the best deal.

The member website provides access to an annuity broking service that can help. You can access the Aon OnePlan member website via the 'My Account' page.

You can take the remainder of your pension savings as one or more cash lump sum(s).

Alternatively, you can take any combination of the above options. 

For example, you could:

• take the maximum tax-free cash sum, 
• use the remainder for income drawdown, and 
• then convert this into an annuity later in life to provide a guaranteed income.

You will need to transfer your pension savings out of the Aon OnePlan to access drawdown and annuity options.

You may be able to take cash from the Aon OnePlan however this will depend on whether the providers you have selected to provide other options needs to administer the cash option.

You can take a series of smaller cash sums from your normal minimum pension age (or earlier protected pension age). 

This option, which is available whether you’re working for Aon at the time or not, is called the Uncrystallised Funds Pension Lump Sum, or UFPLS. 

Through the Aon OnePlan, you can take up to two cash sums each tax year from your pension account. Each cash sum must be at least £1,000 and you must leave at least £1,000 behind each time until your final withdrawal when the pension account must be fully used up. Your pension account will remain invested during this period. 

The first 25% of each cash sum is tax-free. You would pay tax at your marginal rate on the remainder. 

Please bear in mind:

• the amount of cash you take may itself increase your marginal tax rate.
• if you access your pension savings in this way, you’ll be subject to the Money Purchase Annual Allowance on any future contributions you or your employer makes to any UK registered DC pension arrangement. See the 'Your pension and tax' page for more information.

At any time, you can transfer part of your pension account out and leave the rest invested. 

Through the Aon OnePlan, you can make one partial transfer in any 12-month period. 

Each partial transfer must be for at least £1,000 and you must leave at least £1,000 behind.

Your pension account will remain invested during this period.

If, during a partial retirement period, your pension account is due to be moved to the Aon OnePlan section of The Aon MasterTrust, these options will continue to be administered by The Aon MasterTrust. 

See the 'Leaving' page for more information.

• You can choose to buy an annuity which pays a dependant’s pension.
• Any dependant’s pension payable is subject to income tax.

• Any unused money in your drawdown account will usually be paid to your spouse or dependant(s).
• This is currently paid tax-free if you are under age 75 when you die. (See the 'Your pension and tax' page for details of the limits that apply.)
• If you die at or over age 75, any remaining pension savings passed to your spouse or dependant(s) are generally taxed as income.