Your options

With different options to consider, you may wish to consult WPS Advisory to support you with your decision-making. We’ll go into more detail about your options below:

Take a lump sum - tax free

You can usually take up to 25% of your pension savings as a tax free lump sum.. This can be paid in one go, or in stages depending on how you choose to take your benefits. The remaining funds can then be used to provide you with an income in retirement which may be subject to income tax.

Take a small, one-off lump sum payment

If the total value of your pension savings is less than £30,000 across all pensions, you may have the option to take your benefits as a small, one-off lump sum payment. This is sometimes known as a trivial commutation lump sum. You could receive a one-off payment from the scheme and no further benefits would be payable. Please note, this payment can only be made providing you meet the conditions detailed on the Trivial Commutation Small Lump Sum form.

Buying a pension for life (an annuity)

An annuity is a financial product you can buy with some or all of your pension savings to provide a guaranteed pension for life or for a fixed period. The amount you receive will depend on factors such as your age, health, and the options you choose like whether the income increases over time or continues for a partner after your death. Annuity income is taxable.

Taking money flexibly (flexible income drawdown)

Flexible income drawdown lets you keep your pension savings invested while taking money out as and when you need it. You can choose how much income to take and when offering flexibility to suit your retirement needs. You can still take up to 25% of your pension pot tax free with any further withdrawals subject to income tax

Withdrawal from the Scheme

At retirement, you must withdraw your retirement account from the Scheme. The retirement account you have built up in the Scheme can be used for a cash lump sum, buying a pension for life (an annuity), or a transfer to another pension arrangement for flexible access to your money (flexible income drawdown).

Defer taking your retirement account

You may decide to delay taking your retirement account while you decide on the best course of action.

Retirement process timeline

Retirement under the Lifestyle section follows a structured process designed to help you transition smoothly into your pension phase. Here’s what you can expect as your approach retirement:

1. You decide to retire

Once you’ve made your decision to retire, your retirement pack will be issued to you 3 weeks after the month end of your date of leaving Diageo.

If you are a deferred member (have left Diageo but still have a benefit in the Scheme), your retirement pack will be issued within 3 weeks of your request.

2. You request a retirement estimate, and we send it

Capita will send you a retirement pack

Your retirement pack will include the value of your Retirement Account and the options available to you as well as the option forms for you to complete and return once you have made your decision.

3. You make your decision and return the paperwork

Please complete and return your retirement options paperwork as soon as you can to avoid any delays.

You’ll need to make decisions on what option you wish to take

It’s important that you fully complete all of the forms that are sent to you, as any omissions could result in a delay in the payment of your benefits.

4. We review your paperwork and confirm

When Capita receive all relevant documentation from you, your pension benefits will be settled.

5. We pay your benefits

Once all the checks are completed, we will calculate and pay your final benefits.

If you elect to take a cash sum, this payment will be paid to your bank account within 10 days of receiving your retirement options paperwork.

If you decide to buy a pension for life (an annuity) or access your money flexibly (flexible income drawdown), once all the checks are completed, the value of your Retirement Account will be paid to the new provider

Capita will send out a letter to you to confirm when this has happened.

Your options

Your options

Take a lump sum - tax free

Take a small, one-off lump sum payment

Buying a pension for life (an annuity)

Taking money flexibly (flexible income drawdown)

Withdrawal from the Scheme

Defer taking your retirement account

Retirement process timeline

1. You decide to retire

2. You request a retirement estimate, and we send it

3. You make your decision and return the paperwork

4. We review your paperwork and confirm

5. We pay your benefits

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