Ways to take your pension with TPT: Managed Income explained

TPT’s ‘managed for you’ retirement income offerings are proving popular with retirees, with nearly half (48%) of those seeking a regular income choosing them to fund their retirement. In this article we discuss these options, called Managed Income and Future Annuity Income.

Why Managed Income?

Research conducted by TPT in 2024 revealed that just 35% of pension savers felt confident making basic retirement decisions, such as how to access their pension. Despite this uncertainty, 79% did not plan to seek professional financial advice. Significantly, 68% of respondents said they were interested in a guided, automated solution to streamline decision-making about their retirement.

It’s difficult to estimate how much you can take out of your pension to ensure that your retirement savings last as long as you need them to. It can also be challenging to find independent financial advice if your retirement savings aren’t high-value. 

With that in mind, TPT now offers two ‘managed for you’ solutions to meet this demand and give members more choice in how they retire, by providing structured support for managing their retirement income.

What are the Managed Income options?

TPT will pay you a monthly income from your pension, so that it will last:

• to age 95 (this is called Managed Income)
• or, to age 75 (this is called Future Annuity Income). The age 75 option may be useful if you would prefer to secure a guaranteed income in later life, typically to use the remaining value to buy an annuity.

In both options, the money you retire with is moved from ‘savings’ into ‘income drawdown’. This income drawdown part of your pension is invested in a similar way to when it was in ‘savings’ and will begin to provide you a monthly pension.  

TPT continues to professionally manage the investment of your pension, and also now manages your income level and pays you monthly. We aim to review the income for inflation each year, although this can’t be guaranteed as the money is invested and can go up and down over time.  

For Managed Income, income ceases at age 95 at which time there’s expected to be approximately 2-3 years’ value remaining. This will then be moved to another drawdown fund where you can make withdrawals or take income from flexi-access drawdown until the fund is wound down.

Who is it for?

These ‘managed for you’ drawdown options are especially popular with those seeking more certainty in their retirement income.
By the money continuing to be managed for you, this minimises the amount of involvement and decision-making required in maintaining your pension income in retirement.

For these options, you’ll need a minimum £30,000 of pension savings before taking any tax-free cash. If you have other pensions, you can transfer these to TPT to make up the £30K. We’ve set this minimum so that you receive a meaningful level of income each month over the extended period that these options are designed to last.

As well as receiving regular income, you can make taxable one-off withdrawals whenever you like. Please be aware that this will reduce your income as these options are designed to ensure that you have enough money to keep your payments going for the rest of your life, either by continuing drawdown or by buying an annuity at age 75.

Can I change my mind?

All TPT drawdown options can easily adapt to your changing needs, they are completely flexible. You can move some, or all, of your money between the choices offered by TPT, or move your drawdown to another provider. 

TPT offers two non-income options where your drawdown would also be managed for you - an emergency fund ‘safety net’ and an option to leave a ‘legacy’. TPT also offers ‘flexi access’ drawdown – where you are in control of the income you take and where it is invested.  

How can I find out more?

To find out more about our ‘managed for you’ retirement income offerings, please read our guide to TPT drawdown. 

There’s also a short summary of all your TPT retirement options here.

This article provides general financial information only and does not constitute financial advice. Your pension is invested and its value, and any income taken, can go down as well as up. You may wish to seek guidance or advice before making retirement decisions.