Retirement Options
Having successfully built up a pension fund during your working life, there will come a time when you will need to make some important decisions about how to use this fund.
These decisions involve how you intend to draw your pension income to ensure the benefits best suit your needs in retirement. It is normal for people who are retiring to convert a portion of their pension fund into a tax-free lump sum with the balance used to purchase an income.
The income could be in the form of an annuity, where you swap your pension fund for an income for as long as you live. The amount of income the insurance company offers can vary and it pays to shop around for the best annuity rate. An annuity pays you an income for the rest of your life.
There are other options that should also be explored, for example Income Drawdown. Here, the pension fund remains invested and withdrawals are taken. This is a far more flexible approach, but the investment risks need to be understood.
For more information about Income Protection call us on 01276 517700 or email advice@professional-wealthcare.co.uk
Related blog posts
Do you qualify for an enhanced annuity? (January 17th, 2012)
Do you know that if you are a smoker or have a medical condition such as diabetes, high blood pressure, heart disease or cancer, then you could receive a higher retirement income?
Depending on your medical situation, an enhanced annuity could give you up to 40% higher income than a standard annuity, guaranteed for life. Read more »
Gender Ruling (March 2nd, 2011)
Today, 1st March 2011, the unimaginable has happened. The European Court of Justice has ruled that Insurers cannot charge different premiums to men and women. The effects of this ruling will be far reaching and will take effect from 21st … Read more »
How to take more than 25% Pension Tax Free Cash (September 22nd, 2010)
How Much Tax Free Cash can you take from your pension?
The usual answer to this question is 25%. However, how would you like two bites of the cherry? Read more »
