You don’t have to retire to take your pension benefits. In fact you might be part of the generation who re-defines what we understand the word retirement to be.
In 2015 the Government changed the way you can access your pension. You now have total freedom over your money, with many different options for taking an income
Below are a few of the options we can help you decide if they work best with your retirement planning. How best to convert your pension income an income so that you can live the good life you have saved for:
A pension annuity is a contract. You give up your pension fund fully or partially in exchange for a guaranteed regular income over a set term. There are a variety of options and styles of contract.
Most people are aware they can take a tax-free lump sum from their pension, but how does it work in reality? What are the other ways you can take a cash sum from your pension?
Income drawdown allows you to take a flexible income directly from your pension as and when you need it. Your pension fund remains invested. Therefore, you can control the frequency and the amount of income you take to suit your needs. You also can stop taking an income from your pension if required. Your pension funds can also be used to purchase an annuity in the future if appropriate.
The state pension is a guaranteed income payable for your It is given to a person when they reach state retirement age. To receive a full state pension you need 35 years of qualifying national insurance contributions. Partial benefits are available after 10 years total qualifying contributions. You can take your benefits at your state pension age, or defer them. As at April 2021 the maximum state pension is £9,339.20 per annum, per person. It increase annually by the higher of Average Earnings Growth, Consumer Price Index (CPI), or 2.5%. This year the State Pension will increase by 2.5% from 12 April 2021.
There are a lot of decisions that will need to be made when looking at your income options. We can help you with these, so the single biggest decision you need to make is “are Money Tools the firm you would like to instruct and help you with your retirement planning and advice”?
Early release of your pension?
It is possible to unlock cash from your pension fund. In 2015 the Government changed the way you can access your pension. You now have total freedom over your money, with many different options for taking an income
If you are Aged 55+ with a UK Pension you are not currently receiving. You can release up to 100% as a cash lump sum – up to 25% Tax Free*
This service only applies to pensions in the UK. Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.
* up to 25% of your encashed fund is tax free, the rest is taxed at your marginal rate when you take it, which could change in the future.
Death Benefits are paid free of tax if you die before age 75; death after 75 is taxed at the beneficiary’s marginal rate
It’s all about you
Before you talk to us…
… take time to think about your future and whats important to you and your family, think about what you might need in terms of future income, larger amounts you may require and most importantly what you may want to do to make you and those close to you happy.
We all need a passion and to feel we have a purpose, have you thought what yours is? Its generally whats important to us and what makes us feel happy and fulfilled. We see our role as your financial planners and advisors to help you achieve it.
In the meantime, please have a look round our site and have a good read of anything you like the sound of.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
Ready to get in touch?
Get in touch with our Independent Financial Advisers today
Here’s how it works…
- Initial Consultation at no expense to you. We will offer as much advice as we can.
- You’ll receive a quote normally provided at the meeting for your consideration.
- We can either come to you to help us get a better understanding of your situation at first hand or if you prefer to visit us to see our set up, that’s fine. You choose.
- The meeting is completely without obligation.
If you already have an Financial adviser or Planner, the changeover is very simple and we take care of it all for you.