TIP - providing income

The Trustee Investment Plan (TIP) offers the ability to take an income.

Making withdrawals

TIP provides some additional flexibility to provide an income. Your clients may use a TIP to provide income for:

• Scheme pension or income drawdown payments without having to realise other assets held in the scheme.
• Meeting loan repayments for assets held in the scheme.
• Covering any ongoing costs and charges within the scheme.

Regular withdrawals

• Set up - Regular withdrawals can start from the first anniversary of the plan. The withdrawal instructions can be set up when the TIP is taken out or at any time after the plan is set up.
• Limits - There is no minimum income limit. The total maximum withdrawal per year that can be taken is 7.5% of the premium paid.
• Frequency - Withdrawals can be taken monthly, quarterly, six-monthly or annually.
• No charges - For regular withdrawals there will be no exit charge. For investments in the With-Profits Fund we also guarantee that we will not apply any Market Value Reduction on the regular withdrawal amount.

Partial withdrawals

You can make partial withdrawals at any time, subject to a minimum of £1,000. However if you make a withdrawal in the first five years, then an exit charge penalty will be applied. For any withdrawals you make from the With-Profits Fund, we may also apply a Market Value Reduction. Any withdrawals from PruFund Funds may be subject to a 28-day delay. Taking a partial withdrawal will reduce the amount of regular withdrawals you can take. Please see the Key Features for more information.