This article summarises how the Yorkshire and Clydesdale Bank Pension Scheme works for most members.
For a small number of members, the Scheme works differently. If you're one of these members, we will have written to you. If you’re not sure, please contact us.
By the end of this article, you’ll know:
- how much you’ll get
- when you can take your pension
- your options for taking your pension
- where to get help
How much you’ll get
The Yorkshire and Clydesdale Bank Pension Scheme is a defined benefit pension scheme. When you retire, you have the option to get a guaranteed monthly income from the Scheme for the rest of your life.
The income you’ll get from your pension depends on:
- the salary we use to calculate your pension
- when you built up your pension
- how long you built up pension for
You can sign in to check how much you’ll get.
When you can take your pension
Most members have a normal retirement age of 65, but for some members it’s 62. You can sign in to check your normal retirement age.
You can choose to retire earlier than your normal retirement age.
Most members can retire at age 55 with the consent of the Bank or the Trustee. From 6 April 2028 the law is changing, and so this age will increase to 57. The age you retire could affect the amount of pension you can get. You can read about this on the ‘when you can retire’ page.
If you want to retire before your normal retirement age, please contact us.
If you’re so ill that you cannot work again then you can ask to take your pension now, regardless of your age. You can read about this on the ‘If you’re too ill to work’ page.
Options for taking your pension
When you get close to your normal retirement age we’ll send you a retirement pack that explains your options and includes some forms for you to complete.
Your pack will include the option for you to be paid a pension every month for the rest of your life.
You can choose to swap some of this pension for a tax-free cash lump sum. If you do this, you’ll receive a smaller pension every month.
You might get other options in your retirement pack too. These will depend on your personal circumstances.
You can read about other options on the ‘Your options’ page.
How your pension will be paid
If you choose to be paid a pension every month for the rest of your life, then we pay that pension into your bank account. We’ll tell you what date it will be paid when you choose to take it.
Your pension counts as income. You’ll pay income tax on your pension if your total income adds up to more than your Personal Allowance.
Most people’s pensions increase each year in retirement. You can read about this on the ‘How your pension increases once you retire’ page.
Getting help with your pension
If you have a question about your pension, or if you need help understanding your options, you can contact us.
If you want a recommendation about what to do, you need to get independent financial advice.
You can find an independent financial adviser with MoneyHelper, a free service backed by the UK government.