Retirement

It takes many years of planning, saving and sacrifice to build up a significant pension – and after all those years you want to be sure you are making the most of it.

In difficult economic times, your pension fund may be worth less than you expected, so getting the best deal is even more important.

You do not have to accept the pension income offered by your pension scheme. You have the right to take your retirement income from a different provider – this is called the open-market option (OMO).

Your scheme may not offer the best deal for your money when you retire.  The OMO gives you the option to transfer your fund and get an annuity from another provider which can increase your income by up to 30%.  As Independent Financial Advisors we will help you by assessing the whole market on your behalf.

Choosing how to take your retirement income can be a complicated decision.  Before you make any decision, you need to consider:

  • your overall financial situation;
  • what you might need financially in the future; and
  • how much tax-free cash you want to take (this is called a pension commencement lump sum).

There are limits on the amount of cash you can have as a lump sum – usually this is no more than a quarter of your fund. The cash you take will affect how much money is left over to buy your pension.

Once again, we will help you through this process.

Ten important things to consider

  1. Once you have bought an annuity, you cannot change your mind, so getting advice is crucial.
  2. In difficult economic times, your pension fund may be worth less than you expected.
  3. If you want to delay taking your pension income, check for penalties which might apply.
  4. Do you want to change funds before you retire – for example if your fund rises and falls in value?
  5. Do you want to take tax-free cash from your fund before you take an income?
  6. What annuity options are available from your scheme?
  7. Compare what your scheme offers with the open-market option.
  8. Do you qualify for an impaired life or enhanced annuity?
  9. Would one of the alternatives to an annuity be suitable for you?
  10. Get expert advice – talk to us today.