Approaching retirement: preparing for your new path
As you approach retirement, it's important to evaluate the options available to help give you the confidence that you'll be able to enjoy a comfortable life after you’ve finished work.
Helping you understand your defined contribution pension income options
Pension drawdown
Known as Flexi-Access Drawdown (FAD), this provides a retirement income and is a way of accessing your pension pot whenever you like whilst keeping the rest of your money invested.
This option allows you to retain control over your pension investments and offers great flexibility as the amount of income that can be accessed is not subject to any specific limits.
Lump sum
Known as Uncrystallised Funds Pension Lump Sum (UFPLS), this allows you to take a single or series of lump sums from your pension pot flexibly without the need to move the funds into a drawdown plan first.
You also have the option of accessing part of your pension pot by something known as a Pension Commencement Lump Sum (PCLS) or Tax Free Cash.
Annuities
An annuity is an insurance product that allows you to swap all or part of your pension savings for a guaranteed regular income that will last for the rest of your life or for a fixed period of time.
You can choose how regularly you receive your income payments and whether they are the same each year or increase annually by a set percentage.
Please note, the right advice for you may be a combination of the above options.
Remember, the retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in.
1 in 4 people are delaying their retirement
With inflation recently hitting a 40 year high, our finances are being squeezed as the cost of our food and fuel continue to rise. Our research shows that a quarter of UK adults over the age of 55 will have to delay their retirement by at least four years due to rising inflation. How will your retirement plans be affected?
Questions to ask yourself
Should I keep working?
Retirement is an important milestone in life, and deciding the best age to stop working requires careful consideration. While there is no one-size-fits-all answer, there are several key factors to contemplate to ensure a fulfilling and financially stable retirement.
Is my pension pot on track?
As you near retirement, we believe it's crucial to take stock of your financial situation and make adjustments if necessary whilst you still have the chance. Checking whether your pension pot is on track could significantly impact your retirement years.
How can I prepare for a long retirement?
When planning how long your pension pot will last, it’s important to be realistic. Life expectancy has increased significantly in recent decades and if you underestimate how long you will live after you retire, you run the risk of running out of money.
How we'll work with you
Retirement may be just around the corner and so getting your plans in place now could help you look forward to your future, rather than worrying about it. Our specialist advisers will get to know you so that a personalised financial plan can be created aiming to help you achieve your financial goals and make the most of your money.
There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan. Whatever stage of life you’re at, we’re here to help.
Let's start with a free initial consultation
We'll begin with a free, no obligation conversation to understand if our service is right for you. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.