Pensions always appear to be in the media spotlight. The fact is that using a pension to save for your future is still the best way to provide yourself with a secure income during your retirement.
If you have already started saving for your retirement it is important to review the benefits of your scheme and the status of your personal plan. As part of the planning process we will be happy to review all your existing arrangements to see how they are performing. Our advisers will then help you understand the options open to you, to achieve your retirement goals.
The type of pension that is appropriate for you will depend upon your individual circumstances and we will help you select the one that is most suitable for you.
Following changes introduced in April 2015, you now have more choice and flexibility over how you can take money from your pension.
One way to release the savings you have built up in your pension fund is by purchasing an Annuity. The Annuity will then provide you with an income throughout your retirement. You can also choose to provide an income for life for a dependent or other beneficiary after you die. This purchase is a ‘one off’ transaction and it is therefore crucial to buy the right one. The Annuity rate you receive, which determines the level of regular income you will receive, will depend on a number of factors including your age, health and whether you smoke.
More people are choosing not just to buy an annuity but to look at alternative arrangements such as Drawdown pensions. These plans allow you to take up to 25% of your pension pot as a tax free lump sum. You then move the rest into one or more funds and you are able to take income payments should you wish to do so.
With the widening range of choices it’s important to understand what your options are, and the risks involved, in order to ensure you make the right choice with your retirement savings.
A PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.