alternatively secured pension (ASP)

The Alternatively Secured Pension (ASP) was introduced as part of the simplification regime. ASP is only available from age 75 and is a form of 'Unsecured Pension'.

Alternatively Secured Pension plans work in a similar way to Unsecured Pension plans, but with the following differences:-

The maximum income is set at 90% of the appropriate GAD rate, based on an age of 75.
Reviews to set the maximum income limit have to be undertaken annually, but the annuity rate used must continue to be based on an age of 75, rather than on your actual age.
The minimum income is 55% of the GAD rate, based on an average age of 75.

These restrictions are designed to limit the possibility of exhausting your pension fund before death.

Alternatively Secured pension plans are relatively complex and are not suitable for everyone, but they can for some individuals offer a flexible approach to retirement in later life, particularly if annuity purchase is not an attractive option (for whatever reason).

Careful consideration must be given to your personal circumstances.

We strongly recommend advice from us be sought if you are considering this option.