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Retirement

A way of providing for your retirement to replace the income that is lost from the ending of your chosen occupation. The conventional (although by no means only) way of achieving this is by the use of a pension scheme. These usually take the following form;

The legislation for providing for our retirement is constantly changing and within this uncertain market it is still necessary for us to ensure that we provide for the time when we should be enjoying our retirement. The latest legislation covers automatic enrolment.

The value of state pensions will be reducing in the future and it is essential that you save for your retirement in the most tax efficient manner possible.

There are many choices in the marketplace and we are happy to assist you in making the right choice for your circumstances.

Options on Retirement

A pension does not necessarily need to be turned into income at retirement. When you decide that you want to turn your pension fund into income, then there are a further choice of options as to how this can be organised. Typical options include;

  • Choice of provider (You DO NOT have to take your annuity income from the existing pension provider – you have the choice of an Open Market Option which allows you to shop around)
  • Tax free lump sum (known as a Pension Commencement Lump Sum) - normally up to 25% of your fund can be paid out as a tax free lump sum, although this will reduce the amount of income that can be generated
  • How the income is paid, whether monthly, half yearly, annually.
  • Guarantee period – you can have up to 10 years period on some pensions to help protect the value of your fund in the event of early death
  • Spouse’s option – often a wise choice depending on your circumstances, although this will reduce the amount of starting pension income.
  • Escalating option – you can elect to have a smaller pension at the outset in return for the amount escalating each year to cater for inflation.
  • Enhanced or impaired annuity – factors are taken into consideration such as health, smoker status, and even where you live which can provide an increase in the level of income generated from your pension pot.
  • Investment options – subject to your attitude to investment risk you can choose to have an investment element to allow for the potential of future growth.
  • Unsecured Pension – an alternative to the normal route of an annuity which can allow added flexibility to your arrangements. This option is usually only suitable for clients with significant funds within their pension plans.

Whichever your requirement, whether your retirement date is a long way off, rapidly approaching or even behind you then it is prudent to seek independent financial advice.

A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. The fund value may fluctuate and can go down. Tax legislation can and may change in the future.