Alternatively Secured Pensions

The Alternatively Secured Pension (ASP) was introduced as part of the simplification regime. The alternatively secured pension is only available from age 75 and is a form of Pension Fund Withdrawal. It was introduced as an option for those that object to purchasing an annuity due to religious beliefs.

These plans work in a similar way to Pension Fund Withdrawal plans, (see section on Pension Fund Withdrawal), but with the following differences:-


  • A minimum income requirement of 55% and a maximum of 90% of the appropriate Government Actuarial Department (GAD) rate for an annuitant aged 75.
  • Any payments that fail to comply with these limits will incur a 40% tax charge on the difference between the minimum income limit and the amount of income withdrawal paid during that year.
  • Reviews to set the maximum income limit must be undertaken annually, but the annuity rate used must continue to be based on an age of 75, rather than a member’s actual age.
  • Funds remaining on the death of the member must first provide for any financial dependants and thereafter can be given to a charity with no tax liability. Any surplus beyond this would be subject to a tax charge.

Alternatively Secured pension plans are relatively complex and are not suitable for everyone, but they can for some individuals offer a flexible approach to retirement in later life, particularly if annuity purchase is not an attractive option (for whatever reason). Careful consideration must be given to an individual’s personal circumstances. We strongly recommend advice be sought if you are considering this option.


For alternative retirement options advice we act as introducers only.

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BDM Financial Consultants Ltd is an appointed representative of Sesame Ltd.

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Director: Brian Marks

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