Alternatively Secured Pensions

What are Alternatively Secured Pensions?

Alternatively Secured Pensions (ASP's) are invested pension arrangements where income is being received by the member after the age of 75. An ASP is a form of Income Drawdown. Instead of purchasing an annuity at age 75, it is now possible to keep your pension invested and draw an income directly from the fund within government prescribed limits. The income limits are set between a minimum income of 65% and a maximum income of 90% of rates set by the Government Actuary's Department, which is based on the income which a 75 year old could obtain from a single life, level annuity. These income levels are reviewed annually, taking into account the size of the fund and always based on the income which could be taken in the form of an annuity by a 75 year old. Additional information on GAD rates can be obtained from the Reveues website.

• Death benefits under ASP are much less generous than under Drawdown, with effective tax charges of up to 82%. The personal representatives of the deceased ASP member's estate will be held liable for this liability.
• It is possible to transfer from one ASP to another, if you are not happy with your existing ASP arrangement.
• You can also annuitise your ASP arrangement at any point.
• Inheritance tax is not chargeable on any ASP funds paid to a spouse or dependant (which would include children under the age of 23) as retirement income or where the benefits are paid to a registered charity.