It’s time to talk about your retirement
Retirement is the launch pad to a whole new lifetime.
It’s important that you make the right financial decisions
Retirement is the launch pad to a whole new lifetime.
It’s important that you make the right financial decisions
You’ve worked hard for your retirement, so it makes sense to ensure that you have confidence in the financial decisions you make – decisions that may need to last a lifetime.
Before you make any decisions regarding your retirement it’s worth speaking to an independent financial adviser. Click on the Call Back button and speak to one of ours today.
Have any questions?
Simply call us on 08000 478 535 or
email info@fuladvice.co.uk
You don’t need a financial adviser in order to take income from your pension.
However, financial advice could be invaluable in helping you work out the best ways for you to take your income depending on your circumstances.
For instance, through drawdown or an annuity, or a combination of options.
Do I have to buy one? An annuity is a type of retirement income product that you buy with some or all of your pension pot.
It pays a regular retirement income either for life or for a set period.
Whether you should buy one or not will depend on your personal circumstances and pension requirements.
Speaking to a financial adviser is highly recommended.
Income drawdown, or pension drawdown, is a way of taking money out of your pension to live on in retirement.
You have to be aged 55 or over and have a “defined contribution” pension to access your money in this way.
With income drawdown, you keep your pension savings invested when you reach retirement and take money out of, or “drawdown” from, your pension pot.
Since your money stays invested, and it’s usually in the stock market, there is the risk that your fund may fall in value.
However, the upside is that investment growth can provide higher returns and see your pot continue to increase in value.
In April 2015 pension it became possible to take your entire pension fund in one go as cash for you to spend as you wish.
You can do this from the age of 55. However, there are considerable tax implications to consider before going for this option.
To do this, you can close you pension pot and take your fund as cash.
The first 25% will be tax-free and the rest will be taxed at your highest tax rate (by adding it to the rest of your income).
There may also be charges for cashing in your whole fund, and not all pension schemes, particular workplace pensions, or providers will offer this option.
Similarly, some pension companies will require that you take financial advice before cashing in, which means you’ll need to pay the adviser a fee.
However, despite this fee, it’s a good idea to take advice.
No. You can defer taking your pension, and if you wish, continue to pay into a pension up until the age of 75 (when you will have to start taking your benefits).