What are my options at retirement?
You can normally start taking benefits from age 55 even if you are still working. There are a number of ways you can draw income from your retirement savings, depending on the type of pension(s) or savings you have.
There are a number of options available and you should seek independent financial advice if you are unsure which is the most effective or appropriate option for you and your pension fund:
Annuity Purchase - an annuity will provide you with a regular income (i.e. a pension), guaranteed for life.
Find out more about what an annuity is, what types and options are available to you, and what you need to consider when purchasing one.
Pension Income Drawdown (Capped) - this allow you to receive an income by drawing a variable amount of income from that proportion of your fund designated for income distribution each year, within minimum and maximum limits calculated by the Government Actuary’s Department. Furthermore, you retain control over where your income drawdown fund is invested.
Pension Income Drawdown (Flexible) – once a minimum annual pension income has been secured, the remaining fund can be withdrawn without restriction.
Trivial Commutation - if the total benefits, in all registered pension schemes of which you are a member, have an overall value of no more than 1% x the Lifetime Allowance then you can take them as a cash lump sum.
Did you know....?
When deciding what level of income to take and how, you should also consider other important factors including, for example, your personal tax situation, life expectancy and the potential cost of delaying taking your pension.