Retirement Options

The following points are important to consider when dealing with retirement choices. Please consider each of these options and confirm which of the following statements most closely matches your own views: Guaranteed annuity rates or Guaranteed Pension – this valuable feature, sometimes referred to as Safeguarded benefits, commonly allows for a fixed and usually higher level of pension income from the existing plan than could be purchased elsewhere.

Over time, the costs of goods and services tend to rise and this is known as inflation. For this reason, it is important for you to be aware of how this will affect your pension income. Please consider the following statements and confirm which one most closely matches your own view:

Under new rules that were introduced by the Government, from 6th April 2015 it is now possible to take as much money as you wish out of your pension plan, subject to income tax at your marginal rate. You will still be entitled to the element which is tax free (usually 25% of the policy value). You should note that pension benefits are designed to provide you with a means to support yourself in retirement, so it needs careful consideration as to whether spending all your pension now is a good idea. If you do spend your retirement benefits early then you are likely to have to rely on what is likely to be a small state pension in your old age. Bearing in mind the above, please consider the following statements and confirm which one most closely matches your own view: