Enjoy It

Building up a retirement fund throughout your life isn’t always easy, but once you have managed to secure a reasonable fund and you’re considering taking your benefits, it becomes very important that the right choices are made. An Annuity is a guaranteed fixed income which you buy with a lump sum; its term may be to a fixed date, when you die or when your spouse or another named person dies. When you come to retirement, it might be tempting to choose to the first fixed rate, level annuity quote you receive but  with life expectancy increasing,  your annuity might have to pay out for considerably longer and your needs may change over time therefore sensible to shop around.  Do you know what your options are?

• Would you be interested in phased retirement?  Phased retirement can be a useful financial planning tool, for example, if you want to ease back gradually on work and start to replace your earnings with pension income.  You decide the level of income you need each year and take that amount from your plan.

• Did you know you can take part of your pension as a lump sum as early as age 55? Better still, it’s tax free!

• With an unsecured pension (USP - previously known as income drawdown) you don’t buy an annuity.  Instead, you leave your pension fund invested and take an income from it directly. This means you can control when you take your income and how much you take (subject to government limits).  Did you know you can now stay in a USP until age 77?

• On your 77th birthday, if you haven't bought an annuity, another option is to use an alternatively secured pension (ASP). This works in a similar way to unsecured pensions but has different limits and rules.

With so many options available, choosing the right solution for you can be a complex decision. Our advisers are available to discuss these options with you in more detail and help you understand what’s best for your situation.

Our retirement planning and pension review service can help you to make the right choice – and maximise the income available, whichever option you choose. We take a detailed look at what you have, what your plans are and what can be done – and then hunt for the best solutions for you.