Income Options at Retirement:

After retirement there are a number of options available to provide a pension income to ensure a comfortable retirement. We offer a comprehensive service to select the most suitable method of providing your retirement income through capped and flexible income drawdown as well as various traditional pension annuities from the whole of the market.

For years most people arrived at their retirement date and began drawing their pension either from their company scheme or in the form of a straight forward annuity from the Insurance Company with which they had saved for all those years. For a great number of people this is now simply not the most appropriate or flexible option to choose, let alone the one which best maximises their pension income.

Annuities still have their place for certain pensioners, a fixed and guaranteed income for life can be most comforting particularly if the accumulated pension pot is the only source of income. But what about inflation and how that will impact on a fixed level of income which may well be paid for 30 years or more? Annuity income may be increased through an enhanced annuity if you have suffered an illness or have been a smoker in the past. Annuities can be invetsment liked to give the potential of increased income and guarantees and death benefits can be specified to ensure your depend. Standard annuity options direct from your pension provider may not offer any alternative options to make the most of your pension fund, taking a pension fund to the open market may dramatically improve your income.

For more flexibility and the opportunity to continue to grow your pension fund whilst in retirement, drawdown income options can offer a more appropriate vehicle for drawing your pension to fit with your retirement plans. Income levels are restricted under capped drawdown but can allow any level up to the maximum to be taken if you wish to draw a tax free sum without taking the full income entitlement. Through flexible drawdown, qualifying pensioners can draw of their pension fund as they like whenever they like, all subject to tax of course.

People are now far less likely to continue in the same job for the whole of their working life and then retire with a company pension scheme at 65. Many will continue to work beyond normal retirement age, reducing hours and slowing down to full retirement. A more flexible approach to your retirement requires the same flexibility from your pension planning, the options are available to take more control over your pension income to structure your retirement with any number of solutions to suit you and your future plans.

 

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