When your company or private pension matures, we can help you find the solution that best meets your requirements.
Your first option is to invest in an annuity – This is a simple investment where you invest all of your money in return for a fixed amount for the rest of your life. An annuity can include 100% cash protection, spouse benefit, or guarantee period.
Alternatively, you could take advantage of the newer flexi-access drawdown system.
Flexi-access gives you maximum control over your pension pot and allows you to take control of when and how often you withdraw money from it, which can have huge benefits in reducing the amount you are taxed. It also allows you to withdraw a lump sum for things like a new kitchen, a car, or a holiday. There are other big benefits to using flexi-access, which can typically include your partner benefitting from your pension pot after your death.
There are many factors that affect which option is best for you including:
- How much money is in your pension pot
- The amount you would like to draw on a regular basis
- How often you would like to draw down large amounts
- Tax Free allowances, which might be used on other residual income streams
- Your family and dependants
- Your health record