Where the deceased has divided their pension entitlement into a series of segments and has agreed a plan on retirement with their pension provider to take so many segments each year.
This describes how personal pension holders who do not wish to take their pension all at once can stagger purchase of annuities over several years.
The partial 'phased' encashment of segments of a Personal Pension Plan to provide a tax free cash sum and a pension, which together will satisfy the income requirement for the pension holder.
Instead of using your pension fund to buy one large annuity, you break it into a number of smaller contracts so you can buy a series of smaller annuities at different times. This gives you greater flexibility on retirement, particularly if annuity rates are low.
Where a member chooses to use different arrangements (segments) at different times to purchase an annuity or for income withdrawal between the ages of 50 and 75.
Where a personal pension is arranged as a group of separate plans, instead of a single scheme. Annuities are then bought at different times with the different 'segments' of the pension.