Pension Options
At Retirement
What are my pension options at retirement?
Government estimates for the UK show that life expectancy for people aged 65 in 2007 will be:
- Around 86 for men; and
- Around 88 for women.
Source: Government Actuary's Department – cohort figures 2007
You could be living on your retirement income for many years so its essential you make the right decisions when it comes to taking retirement benefits.
There are a number of options available to you when you come to take your retirement benefits. The main purpose of most pensions is to provide a regular income for life on retirement; however, a proportion of the pension fund can usually be used to provide a tax-free lump sum (known as a pension commencement lump sum).
You willnormally be able to take up to a quarter of the value of your pension as a tax-free lump sum. Taking a tax-free lump sum will reduce the regular income you can get from your pension.
There are a number of ways in which a pension can be used to provide a regular income:
- Conventional Lifetime Annuity
- Investment Linked Annuity
- Income Drawdown (Unsecured Pension & Alternatively Secured Pension)
Whether you're looking for advice on drawing benefits from an individual pension arrangement or a company pension scheme contact us now! Our initial consultation is free and without obligation. For pension advice we offer products from whole of market.