Can i withdraw my money from prudential retirement

If you're considering setting up regular withdrawals from your investment bond or changing your withdrawal amount, we'll be happy to help. Please be sure you understand all your options and the effect of any changes you make. There are a few things you and any other plan owner should think about before you make any decisions.

If you have any questions once you've read this summary, or need any help understanding your options - just call us on 0345 640 1000 or +44 178 644 8844 if you're calling from abroad. We might record your call for training and quality purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata.

How an investment bond works

An investment bond is a lump sum investment intended to be held over the medium to long-term (5 to 10 years or more) which invests in a range of funds. Bonds are usually split into a number of segments, which gives you options when you want to access your cash.

The value of your investment can go down as well as up so you might not get back the amount you put in.

Things to consider before setting up withdrawals

You’ll need to think about the following:

• The amount you wish to withdraw, which could be:
  • a fixed amount.
  • a percentage of the current value.
  • a percentage of the original sum invested.

• The frequency of withdrawals.

• When you want them to start.

• Whether you want to spread your withdrawals across all funds or detail which fund(s) the cash comes from.

Some plans offer alternative withdrawal options, for example distribution bonds will allow you to withdraw the distribution income while with-profits investments will allow you to align regular withdrawals with any annual bonus achieved within your plan – we’ll be happy to discuss these with you if you get in touch.

As an alternative to regular withdrawals, you could consider:

• Taking out part of the plan as a lump sum.
• Fully cashing in your plan and closing it down.

How withdrawals could affect you

There are some important things to consider before making withdrawals:

• Withdrawals from the With-Profits Fund may result in a market value reduction which can reduce the value of any withdrawals taken from the fund.

• Some bonds limit the amount you can take out through regular withdrawals.

• Withdrawals could create a tax liability - see ‘tax considerations’ below.

• Withdrawals could also impact your entitlement to tax credits and your personal allowance.

• If you’re invested in one of the PruFund protected funds any withdrawals will reduce your guaranteed amount.

Tax considerations

Whether withdrawals from your plan will result in a tax liability will depend on a number of factors including your personal tax position and the timing and amount of any withdrawals.

You can withdraw up to 5% each year of the amount you have paid into your bond without paying any immediate tax. This 5% limit is cumulative so any unused part can be carried forward to future years (the total can't be more than the amount paid in). If you take more than this you could create a tax liability.

There’s more information in our guide to tax on your investment bond.

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

Protecting yourself from investment scams

Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out how to stay ahead of the scammers.

What to do now

Give us a call on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad. We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area at pru.co.uk. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.

We’re here 8am - 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.

1Subject to the performance of the participating fund. The step-up income is at least the same or more than the previous year.

2Choice of payout age from age 50 to 90.

3Policyowner can change the payout period any time until 2 months before the start of the payout period. The choice of Payout Period is: 10, 15, 20, 25 or 30 years.

4PRUActive Retirement II provides coverage against total and permanent disability of the life assured because of an accident during the term of the policy, or before the policy anniversary prior to the life assured attaining age 70, whichever is earlier.

5Effective only if main life assured passes on after premium payment ends, applicable for joint ownership between husband and wife.

6 For single premium policy, no add-ons of additional benefit will be allowed.

7Crisis Waiver III waives the future premiums of the covered benefits up to age 85.

8After the end of the Early Stage Premium Waiver Period, premium payment for the covered benefits will resume, but the premiums for the Early Stage Crisis Waiver will continue to be waived.

9The second claim will waive the premium for another 5 years. This is provided the second claim is not for the same medical condition as the first claim, and it does not fall within the same category of the first early stage medical condition.

10If there was a successful claim under early stage medical conditions, the Intermediate Stage Medical Conditions Benefit only waives 5 years of future premiums.

You are recommended to read the product summary and seek advice from a qualified Prudential Financial Consultant for a financial analysis before purchasing a policy suitable to meet your needs.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.

Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. Premiums for some of the supplementary benefits are not guaranteed and may be adjusted based on future claims experience.

The information contained on this website is for reference only and is not a contract of insurance. Please refer to the exact terms and conditions, specific details and exclusions applicable to this insurance product in the policy documents that can be obtained from your Prudential Financial Consultant.

The information contained on this website is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.

In case of discrepancy between the English and Mandarin versions of the product brochures, the English version shall prevail.

These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policies is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).

Information is correct as of 1 October 2021.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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