Collective Retirement Account (CRA)

Selestia Investment Solutions is the brand name of a new investment platform that combines the strength, innovation and award-winning service standards of two of the UK’s market-leading investment providers: Selestia and Skandia MultiFUNDS. The CRA provides you with access to a tax-efficient method of saving for your retirement, together with complete flexibility over fund choice and product features. The Selestia Investment Solutions investment platform offers access to over 900 funds, from 67 fund managers, all under one roof.

Useful literature and information

Collective Retirement Account:

The Collective Retirement Account is provided by Selestia Life and Pensions Limited.

Benefits

• The CRA offers you the chance to invest in a choice of over 900 funds all under one roof.
• You can invest in up to 50 funds per application, allowing you to spread your investments as you wish, to create a fully diversified portfolio. You can switch between funds, free of any administration charge, allowing you to react quickly to changes in the market.
• You will receive basic income tax relief on personal contributions immediately. For example, if you invest £80, we will invest a further £20 for you and claim this money back from HM Revenue & Customs. If you are a higher rate taxpayer you can claim any further tax relief through your self-assessment.
• Your employer can make contributions into your pension. You can even have multiple direct debits going into your pension, for example one from your bank account and one from your employer's bank account.
• You can transfer your existing pension(s) into the CRA to keep all your retirement savings in one place.
• When you reach retirement you can decide to take all your benefits at the same time, or take only some of the benefits, allowing you greater flexibility.
• Normally 25% of your fund can be taken as a tax-free cash sum on retirement.
• The funds you invest in are free from capital gains tax and generally free from income tax. With less tax paid, more goes towards the growth of your funds.
• You can also access your investments online through our secure client extranet site.

Risks

• Tax rules can change at any time, which may affect your investment.
• The value of your units can go down as well as up, and investment growth cannot be guaranteed.
• There may be risks involved in the way you decide to take income or benefits from your pension, and you should always take independent financial advice when making these choices.

Who is eligible?

• Any UK resident aged up to 74. A guardian is required to sign on behalf of an investor under the age of 18.

Minimum and maximum subscriptions

• Minimum lump sum: £3,600 (gross)
• Minimum direct debit: £99 (gross) per month or £3,600 (gross) per annum

The maximum amount you can contribute to your pension and receive tax relief is either £3,600 each year or 100% of your earnings, whichever is higher. The Annual Allowance is the maximum amount that you can accrue in all registered pension schemes before you become liable for tax. If your earnings are greater than the Annual Allowance you may still contribute 100% of your earnings and receive full tax relief; however, any contributions exceeding the Annual Allowance will be subject to a tax charge.

The Annual Allowance has been set for the tax years shown as follows:

2008/09 – £235,000
2009/10 – £245,000
2010/11 – £255,000

If the total amount accrued in all of your registered pension schemes exceeds the Annual Allowance you will be personally liable to a tax charge of 40% on the excess amount.

Term

• You cannot normally take the benefits out of the CRA before age 50 is attained (55 from 6 April 2010), and no later than 75 is attained.

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