Taking your retirement benefits
The increased pension flexibilities introduced in recent years have been widely welcomed, giving everyone greater choice at retirement and the opportunity to decide how and when they spend their pension benefits.
If you are a member of a money purchase pension scheme you can access your funds from the age of 55; you have the freedom to draw down as much or as little of your pension as you want, you can take a proportion of your funds as tax free cash and you no longer have to purchase an annuity.
In theory you can use your funds however you wish; perhaps easing yourself into retirement over a number of years, or freeing up funds to repay a debt.
However, it is important to consider the long term implications of any decisions you make.
You will need to ask yourself many questions, such as:
- Are you drawing your funds in the most tax efficient way?
- Have you considered your immediate needs and those of the future?
- How long do you expect to live – could your money run out too soon?
- Would your estate benefit from leaving your pension pot intact?
None of these are easy questions to answer, but we are here to help.
Together we can assess your situation and help you to clearly understand your retirement options so that you can be confident that the decisions you make are right for you both now and in the future.