Taking your benefits

When can I take my benefits?

The Normal Retirement Date (NRD) under the Fund is the date at which you can take your benefits without any reduction for early payment and will be shown on your latest benefit statement. Over the years the NRD in the Fund has changed, this means you may find you have different NRDs for different periods of your service. 

Will I be able to take part of my pension as a cash sum?

Based on current legislation, you will normally have the option to exchange up to 25% of the value of your total Fund benefits for a tax-free cash lump sum at your retirement in return for a reduced pension. There is a limit on the maximum amount of tax-free cash that can be paid, for most people this will be £268,275 over the 2024/25 tax year.

In certain limited circumstances set by HMRC, where your pension is deemed to be of a trivial amount, you may be able to surrender your whole pension for a lump sum (with 25% being tax free).

Please note the actuarial factors used to calculate any tax-free cash lump sum are reviewed from time to time by the Trustee and are subject to change, without notice. If the factors change before you take your Fund benefits, this may result in your taxfree cash lump sum being lower or higher than the amount stated in your retirement quotation.

How do I obtain a retirement quotation?

The Administrator will contact you shortly before your NRD with details of your pension benefits and options.

If you want to take your benefits at a different date, you can obtain a retirement quotation by contacting the Administrator or by using the Benefit Quotations calculator on the Member Portal. By using the Portal, you can model figures at different retirement ages.

You should note that the retirement quotation initially provided to you will contain estimated figures and does not constitute a promise or entitlement to benefits. There are also certain aspects of the calculation basis which may be subject to change, including actuarial factors used by the Trustee and rates of revaluation applied to your deferred pension.

Can I take my benefits while I am still working?

Yes, your employment status does not affect whether you can take your benefits.

Can I take some of my benefits now and some at a later date?

This option (known as flexible retirement) is only available to employees in respect of your current period of pensionable service, if you were an active member of the Fund on 31 March 2021 and will be in employment with Nationwide at the date you start taking your benefits. Further details on the applicable rules can be found in the Flexible Retirement Guide.

What happens if I am too ill to carry on working?

If you become permanently unable to work as a result of ill-health, you can apply to the Trustee to have your benefits paid early on the grounds of ill-health. This as  known as a Permanent Incapacity Early Retirement (PIER) pension. In order for the Trustee to consider awarding a PIER pension, they will require information from you and a professional medical adviser (such as your GP and/ or specialist), as well as the Trustee’s medical adviser.

Where payment of an ill-health pension is approved, there is no minimum age for payment. If you were an active member of the Fund when it closed to future accrual on 31 March 2021 and retire from the same period of service with Nationwide due to ill-health there will be no reduction applied for early payment to the benefits applicable to that period of service. In all other cases a reduction will be applied for early payment. Once a PIER pension is awarded, the Trustee retains the right to review and subsequently reduce or stop it if you return to good health.

Additionally, in the circumstances of serious ill-health, where life expectancy is considered to be less than 12 months, you may be able to take the total value of your pension benefits as a single lump sum.

How will my pension be paid?

Your pension will normally be paid monthly into your bank or building society account on the 22nd of the month. Your pension is subject to income tax which is deducted via PAYE.