This option may appeal to you if you prefer a regular expected payment, much like a salary.

The pension you receive will increase each year in line with the Plan’s rules. The amount your pension will increase will depend on which section you’re in.

At the point you retire you will have the option of taking a tax-free cash lump sum from the Plan, which will mean reducing the amount of regular pension you receive (unless you have paid Additional Voluntary Contributions (AVCs) and use these to pay your lump sum first).

You can currently take up to a maximum of 25% of your total benefits tax-free as a cash lump sum.

A lump sum could be used to handle unexpected expenditure such as, medical expenses or home improvements and can potentially be passed on to your beneficiaries in the event of an early death.

You have the option to transfer your benefits to another registered pension scheme.

Whilst transferring your benefits will potentially provide you with more flexibility, you really need to consider this option carefully and decide whether this is right for you.

If the cash equivalent value of your pension is £30,000 or over, there’s a legal retirement for you to obtain appropriate independent financial advice.

If your benefits are less than £30,000, it’s strongly advised that you seek independent financial advice before transferring.

If you have reached retirement age, you can contact WPS Advisory Ltd (WPSA), the current independent financial advisers appointed by the TotalEnergies Trustee but not endorsed by them. This advice will be paid for by the Trustee on one occasion only, so you should make sure you take this advice at the right time for you.

You can contact WPSA on 0808 145 3470 to register your details and arrange an advice session with them.

You can of course also appoint your own independent financial adviser, but this will not be paid for by the Trustee.

To appoint your own financial adviser, make sure they are registered on the Financial Conduct Authority (FCA) website (register.fca.org.uk/s/)

If you decide to transfer out of the Plan

The benefits you receive will depend on the size of your cash equivalent transfer value (provided by the Plan Administrator) and the arrangement you transfer your benefits to. Here is a summary of some of the options that may be available to you in the arrangement you transfer to, but this list is not exhaustive and you should seek more information from your financial adviser:

The Trustee is not advocating any option and the outline below is a high level summary only and you will need to decide the level of risk and outcomes you want and discuss them with your independent final adviser before deciding to transfer out of the Plan.

Drawdown

Drawdown is one of the most flexible ways to access your pension, available from normal minimum pension age (NMPA) which is 55 but is rising to 57. You can usually take up to 25% as a tax-free cash lump sum and keep the rest invested for later. You’re in control of how much income you take (which is taxable) and can make withdrawals whenever you want to.

You have the freedom to choose your own investments, and if they perform well you could receive a growing income throughout retirement. Any money left over when you die can be passed on to your loved ones, often tax free.

If you choose this option (outside the Plan), you'll need to consider carefully how you would like to take your benefits and when you want to take them and ensure that the receiving arrangement you choose will be able to provide the benefits you require.

Annuity

You could buy an annuity (a contract between you and an insurance company) to give you a different kind of pension from the one you would otherwise receive from the Plan.

You could have a choice of whether to have pension increases, or a higher starting pension with no increases.

You could choose to provide a pension for a dependant if you die before them (but this would make your pension smaller). If you suffer from ill-health you may be offered a higher pension but would need to provide relevant details to the insurer and usually take a medical, (The pension is higher as you are not expected to live as long as someone in good health).

You could elect for your pension to be guaranteed and for it to be paid for a number of years after it commences, with the balance of that number of years’ pension paid to your dependants in the event of your death within the guarantee period.

Cash (UFPLS – uncrystallised fund pension lump sum)

You may be able to take all of your benefits as a one-off cash sum either immediately or at a future date. Currently, 25% of the lump sum would be tax-free and the rest would be taxed as income at your income tax rate.

If you transfer out and don’t want to start receiving your benefits immediately, you’ll need to invest your pension savings. This means that any changes to your benefits will depend on the investments you choose and how those investments perform.

There is no guarantee if you transfer that the benefits provided will be equal to or higher than those from the Plan. They could be higher or lower than those that would have been provided by the Plan.

If you decide to transfer your benefits to another arrangement you need to be especially vigilant of pension scams. Visit the pension scams section of the website for more information.