Access advice from professional, qualified retirement pension advisers.
Obtain qualified, knowledgeable retirement pension advice.
We help guide you through the maze of income options available from your personal pension. You can then rest, assured in the knowledge, you made the right decision as to which income option you chose.
So, you now feel it is time to either semi or fully retire? You now want to access the funds in your pension or pension who have had over your working life to provide you with an income in retirement.
There are many options open to you, to convert your pension fund(s) into an income. How do you choose the right one that fits with your lifestyle and retirement goals? The amount of information for you to research can be quite mind boggling, confusing and perhaps difficult to understand.
That’s why we believe you should obtain professional qualified advice from someone who is qualified, has the appropriate pension knowledge and experience to guide you and advise which option is right for you. Client circumstances differ, so it is vital that whoever is advising you, knows and understands your particular needs.
Below, are your options, and the key things to consider.
Your Retirement Options Explained in Brief
A summary of the choices you need to make
The information below provides a summary of the options open to you when taking an income from your pension(s). Id does not constitute financial advice. Therefore, we recommend, before making a decision on your pension income options, you should obtain qualified professional advice. You can do so by completing the enquiry form. Your enquiry is fully confidential, handled quickly and there’s no obligation to proceed. There is no fee for an initial discussion with an adviser.
Get a flexible retirement income
You can withdraw regular income from your pension pot. The money left in your pension will remain invested, so the value of your pension could grow or decrease over time. When you withdraw an income (monthly, quarterly, bi-annually or annually), 25% of it will be tax-free, the remaining part will be subject to income tax. How much tax will depend on your overall income.
Alternatively, you may need access to all, or part, of your tax-free cash (25%) immediately. This is another choice you need to make. The withdrawals from the remaining pension pot, will be subject to income tax, as above. However, it is possible to release the tax free cash without the need to take an income.
Get a guaranteed income for life
Another option to consider is to receive a guaranteed, regular income (also known as an annuity) for the rest of your life. You can normally take 25% of your pension pot tax-free, but again, as above, the guaranteed income you receive from the annuity will be subject to income tax.
Combine your pension options
Depending on your needs, you can choose to access your retirement savings using a combination of the options above. You can do this over a set period of time or until you’ve used your entire pension pot. If you have more than one pension, you can use different options for each pot. Some pension providers can offer a combination of a guaranteed income for life with a flexible income.
Take your whole pension pot in one go
You can take your whole pension pot as a single lump sum, but usually only 25% of your pension pot will be tax-free. The rest will be subject to income tax. If you choose this option, you’ll need to plan how the lump sum can provide an income for the rest of your retirement.
Take your pension pot as several lump sums
You can withdraw lump sum payments from your pension pot, until your money runs out or you decide to stop the lump sum withdrawals. The amount you take and how often you take it is entirely up to you. 25% of each lump sum withdrawal will be tax-free, but as above the additional amount over the tax free element will be subject to income tax. Any money left in your pension pot will remain invested, so the value your pension could grow or decrease over time.
Choices and decisions
The choices you make for your retirement have a significant impact on your retirement income into the future. That’s why we whole heartedly believe you should speak to a qualified, experienced and knowledgeable financial adviser before you decide which option you take. Also, we believe you should never be rushed into making a decision. We absolutely believe making the right decision through appropriate advice will be the best decision you will make. Making the wrong decision, without help, could have a calamitous effect on your financial future.