What is alternatively secured pension?
Alternatively Secured Pension is a form of income drawdown after the age of 75. If you decide not to by an annuity before you reach 75, the residual funds remain invested and you can draw an income directly from the arrangement. However, the maximum and minimum income limits for ASP are more restrictive than for income drawdown- The maximum income limit is 90% of the annuity that could be purchased on the open market at age 75 and the minimum is 55%. These amounts are reviewed yearly.
Related Questions
- My wife does not work outside our home and therefore will not have pension income that normally results from employment income. How can we set up a retirement income plan for her?
- When is Inheritance Tax charged on alternatively secured pension funds?
- Does CPA include an Alternatively Secured Pension (ASP)?
