A Personal Pension Plan for Isle of Man Residents
The Rewards Personal Pension Plan (Rewards Personal) is an Isle of Man Personal Pension established under trust in the Isle of Man offering tax efficient accumulation, wide investment choice and the option to consolidate existing plans (including UK) into a single cost-effective solution to save for retirement.
Rewards Personal has two separate sections:
- Rewards Personal (PFS)
- Rewards Personal (1989)
It is possible for you to hold benefits within both sections of Rewards Personal simultaneously, taking advantage of the best elements of each to support your retirement planning.
Rewards Personal (PFS section) Key Features:
- Pension Flexibility: no requirement to purchase an annuity, choice of retirement lump sum and choice of income options
- Succession Planning: the residual fund on death can be used to provide a taxable pension income for a spouse or dependant or can be paid out as a lump sum to nominated beneficiaries, at the discretion of the trustee (with no Isle of Man tax due at source on this distribution)
- Pension Commencement Lump Sum (PCLS): ability to take a lump sum of up to 40% of your accumulated fund value on or after the age of 55, free of Isle of Man tax at source
- Tax Efficient Accumulation: tax relief on contributions equates to 100% of Isle of Man Relevant Earnings (subject to an annual contribution limit of £50,000) and your fund will grow free of Isle of Man tax at source
- Consolidation: Rewards Personal is a cost and tax efficient means of holding all pension arrangements under one roof
- Investment Choice: Rewards Personal offers a range of investment options covering all geographical regions and asset classes. A lifestyling strategy is also available whereby your investment portfolio is automatically de-risked as you approach retirement
- Online Access: You can view your latest Rewards Personal fund value on our online system at any time
For individuals with funds built up outside the PFS regime, transfers can be made into the 1989 section of Rewards Personal whereby the maximum lump sum is 30%, retirement age is 50, income must be taken on a sustainable basis for life and there is a tax of 7.5% at source on a lump sum distribution to death post-retirement. For funds that were originally UK sourced further restrictions may apply.
