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What does toothpaste and tax-free cash have in common?
Once taken out, it can’t be put back in.
Make your client’s pension fund last longer with our tax-efficient regular income options.
Do you have clients who have no immediate need to access large amounts of their tax-free cash entitlement, but who do need a level of regular income to be generated from their pension savings?
If you do, are you making the most of our tax-efficient regular income options (TRIO)?
Your clients could withdraw up to £18,440* per annum, using our fully automated tax-efficient retirement income options before any income tax is payable.
*Calculated for the 2025/26 tax-year. Based on a personal allowance of £12,570 and claiming 10% of their spouse’s personal allowance. The withdrawals are made up of 25% pension commencement lump sum which is tax-free and the remainder falls within the personal allowances where applicable. Payments can be made monthly/quarterly/half yearly or yearly.
Why choose TRIO?
TRIO allows your clients to take tax-free cash on a regular basis to provide a source of retirement income with no income tax liability. As a result, you can:
Control when your client pays tax based on their income tax band, for example giving them a tax-free income while they are still working
Make your client's pension fund last longer by only withdrawing what they need
Leave more invested to grow and provide an income.
Remember, from 6 April 2027, unused pension savings will be subject to inheritance tax. For clients with estates that risk breaching the nil-rate band, withdrawing their PCLS from the pension and moving it into trust may provide a better client outcome.
We do the heavy lifting for you
Completing a request online takes just five minutes. Once completed, the process is completely automatic, meaning you don’t need to send us a form every time your client needs income. Just think of the time and money you could save, whilst also demonstrating the value of your advice to your clients. Let us do the heavy lifting for you.
The tax-efficient regular income options
Each of our three options provide automated regular payments, which can help you reduce unnecessary regular withdrawal paperwork:
- Pension commencement lump sum only
- Pension commencement lump sum plus full income
- Pension commencement lump sum plus some income.
Giving you choices when building your drawdown strategies
Taking money from the right place is ever crucial in today’s complex world.
That’s why at Quilter we don’t restrict your advice principles in terms of how you disinvest to meet your client’s withdrawal strategies. Our platform provides you with 2 choices when selecting the assets you wish to sell for the income to come from:
- Specific assets
- Proportionally across all assets.
Yes, we can link fully automated TRIO to clients who are lucky enough to have significant pension pots in terms of size and are inhibited by the lifetime allowance.
We can also offer TRIO for clients who are subject to the majority of lifetime allowance protection (all types of individual protection, all types of fixed protection, enhanced protection going back to 2006 and all forms of lifetime allowance factors).
Case studies
Duncan is 59 and earns £56,000 a year.
He wants to work a bit less, which would reduce his income to £50,000 a year. He wants an income from his Quilter pension of £500 a month to make up the difference without having to pay tax on that income.
Duncan’s adviser recommends he moves £2,000 out of his pension pot every month, giving him 25% (£500) as tax-free cash and putting the other 75% (£1,500) into drawdown.
When he earned £56,000 Duncan was a higher rate taxpayer. With his reduced hours reducing his income to £50,000 he is now a basic rate taxpayer. After he retires, he expects his income to be lower. So he would rather take tax-free income now to prevent paying higher rate tax and take taxable income from his drawdown pot in the future when he has a lower income. As Duncan’s needs change over time, he can change what he is doing.
Willow is 67 and about to retire.
She wants an income from her Quilter pension of roughly £500 a month to boost what she gets from her state pension and small employer pension.
Willow’s adviser recommends she moves £600 out of her pension pot with Quilter every month, giving her 25% (£150) as tax-free cash and moving the other 75% (£450) into drawdown. Her adviser also asks us to immediately pay this money out to her again as income. This income is taxed.
As her state pension and small employer pension use up all her personal allowance the extra money will mean she is a basic rate taxpayer, so she pays tax at 20%. 20% of £450 is £90. So, after tax, her £450 has become £360. Her total income from her Quilter pension is £360 + £150 = £510 per month.
She’s taking an income, but not building up any money in her drawdown at the moment. As Willow’s needs change over time, she can change what’s she’s doing.
Useful support material
Next steps
Need more information?
Find out more about our pensions by getting in touch with your Quilter consultant.
Approver: Quilter May 2026
Q 00974/205/17004