WHEN CAN I RETIRE?
The minimum age you'll normally be able to take your company or personal plan will soon be age 55. You can delay taking it until age 75
HOW MUCH WILL MY
PENSION PAY ME?
Your pension income depends mainly on the size of your pension pot and how long the annuity is expected to be paid. It also depends on the pension provider. And as you don't have to buy an annuity from your own pension provider, OMO,it's important to shop around to get the best deal
WILL MY PENSION KEEP
UP WITH INFLATION?
That depends. You have various options on retirement and can for instance take a LEVEL pension, GUARANTEED pension or say INFLATION linked pension. There are other choices which The Money Works will discuss with you
WHERE CAN I FIND OUT MORE?
Some FSA Money Made Clear brochures you may find interesting
Congratulations!.........
......If you've got a Personal Pension, Stakeholder Pension, Additional Voluntary Contribution Scheme, Retirement Annuity Contract and are a few months away from your retirement date. Why? Well, you should have received, or shortly be receiving details from your Pension Provider of the good news about your options at retirement and how you can take your pension pot.
Your Options at retirement are generally:
1. Take up to 25% of your pension fund as a tax- free lump sum before age 75
2. You have to use the remaining fund to provide you with a taxable income
with a number of options by age 75. For example:
• a lifetime annuity – this is the option most people use;
• an unsecured pension* using short term annuities or income withdrawal
• "Third Way" Variable annuity
You may also be eligible for a bigger impaired life annuity. These pay a larger than normal income if you have a health problem, that potentially reduces your lifespan. You might also be able to get an enhanced annuity if you are overweight, or smoke regularly. In addition, some companies can offer higher rates to people who have worked in certain occupations or who live in certain areas of the country.
The main point here, is we research all your options and ensure you make an informed choice. Once you have made many of your pension retirement decisions, they are usually fixed for a retirement which is likely to last for 20 to 30 years - so you may need to get it right first time. Come and talk to us and we can help with this important decision.
Your Valuable "OPEN MARKET OPTION"Did you know you do not have to take a pension with the pension company that you saved with? You can actually "shop around" to see who could give you a bigger income from your pension pot? This free option is built into your pension and it could mean by switching the pot to another pension Provider you could get a bigger income! Your Open Market Option (OMO) is where The Money Works may be able to squeeze more money out of your pension savings to give you a better income during retirement.Contact us to find out more!
On clicking any external links, you will depart from the regulatory site of The Money Works. Neither The Money Works nor Sesame Ltd. is responsible for the accuracy of the information contained within the linked sites.
*Please note that for advice on UNSECURED PENSIONS, we act as introducers
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