What's the best investment for your pension fund?
You've saved over the years and now it's time to enjoy your retirement and put your money to work.
If you're under 75 you can normally take up to 25% of your pension as a tax-free lump sum. This option may also apply to Additional Voluntary Contributions, Free Standing Additional Voluntary Contributions and Protected Rights Pensions.
Then you have a choice of flexible options which you can take singly or in combination, to structure your retirement income depending on your priorities.
For a full picture of the choices open to you, contact your Financial Consultant. Alternatively leave your details and we'll call you.
In the meantime, here's a summary of the two major pension types:
Secured Pensions
Lifetime Annuity
Pays a guaranteed level of income for the rest of your life with various options including a reduce pension for spouse or partner. You can also choose for your income to be guaranteed for a minimum period of time even if you die.
Scheme Pension
The only option available from final salary, or defined benefit, pension schemes, also offering a guaranteed level of income for the rest of your life, including the choice of a reduced pension for your spouse of partner.
Unsecured Pensions
Income Withdrawal
You don't have to buy an annuity as soon as you retire - though you must take any tax-free cash before you are 75. Income drawdown enables you to keep your money invested and take an income when you want to. You can vary the amount of income you take subject to government limits. The level of income is not guaranteed and will depend on fund performance.
Short Term Annuity
This type of annuity is attractive to someone who wishes to defer buying a lifetime annuity. It provides an annuity payable for up to 5 years, using part of the pension fund, with the remaining money still being invested. If security of short term income is required, with the ability for future investment growth, then this may be the best choice.