Retirement

Make the most of your free time

You can choose to take income from your pension fund from age 55. You can usually take a tax-free cash lump sum, normally up to a maximum of 25%. You may be able to take the remainder of your fund as cash, but this would be taxed as income. As of April 6th 2015 we expect these rules to change. You may then be able to take the full pension fund as a cash sum subject to tax. Professional advice should be sort regarding the proposed changes
Retirement options

Open Market

Many people are unaware that they have the right to shop around for a different annuity provider,

to provide them a pension income for their retirement. By shopping around, you could get a better annuity rate for your pension fund. This can make a significant difference to your retirement income.

So exercise your right today, be different and get a higher income by shopping around

Annuities

An Annuity converts your pension fund into a pension income which will be paid to you for either the rest of your life or a fixed term

When you are approaching retirement, your pension provider will write to you with details about your pension fund, and how you can use your pension fund to buy an annuity.

The Guaranteed Pension Annuity (our conventional annuity) guarantees to pay you a regular income for life. When you purchase your annuity you’ll have the flexibility to choose whether your income stays the same throughout retirement, goes up each year by a fixed amount, or matches yearly changes in inflation by being linked to the Retail Price index

You may also include a 5 or 10 year guarantee or have the pension continue to your spouse should you die early

Impaired Health

Do you take tablets or suffer from

Blood Pressure, Cholesterol, Diabetes, Asthma, Breathing Problems, Heart Problems, Cancer, Multiple Sclerosis or something more serious or have you smoked in the last 10 years. Any of these can increase your income in retirement

With Profits

The With Profits Annuity combines the payment of an income for life with the potential for growth as well as some protection from inflation.

Your fund will be invested in the insurance companies With Profits fund.

You are asked to set the Assumed Bonus Rate (ABR/BAR) level for a With Profits Pension Annuity. Effectively, you are being asked what bonus do you expect to be declared from the With Profit fund at the end of the year. The normal parameters are between 0% and 5%.

Your income will be linked to the performance and subsequent bonuses declared by the With Profit fund. If the declared bonus rate is lower than expected you may suffer erosion of the fund. We would recommend this type of investment be reviewed on an annual basis

Income Drawdown

Income drawdown allows you to take an income directly from your pension fund while leaving the remainder invested for potential further growth.

It allows you to take control of how and when you receive your retirement income, so you can retire fully or semi-retire

The Government sets a maximum limit of how much you can take as income in any 12-month period through income drawdown. However, there’s no set minimum, which means you could actually delay taking an income if you want to and simply take your tax-free cash lump sum

You can choose from a range of investments, but remember the performance of the investments will affect the income you receive.

This is an area of retirement planning that requires advice. It is extremely important that we ensure this is the correct way to take your retirement benefits.