Enjoying Your Retirement

The moment has finally come and you can clock-out for the last time and become a person of leisure! You can normally decide to take a retirement income from your pension any time between age 55 and 75, in many circumstances even if you’re still working. Until 6 April 2010, it may be possible to take your pension from age 50.

Retirement planning can never be a “one size fits all” scenario. Over the past few years, using your carefully built-up retirement fund to provide you with the lifestyle you now seek has become a complex area and requires specialist advice. “Choice” and “Flexibility” now play a major part in accessing retirement benefits.

There are several ways in which to use your pension fund to provide you with a tax free lump sum and/or an income:

  • An Annuity is a plan which provides regular income payments or ‘instalments’ for life, in exchange for a lump sum (your pension pot). Before simply accepting the annuity offered by your existing pension provider, it is important to note that this may not necessarily be the best rate on offer. As Independent Financial Advisors we do a “whole of market” search for the best rates on offer, depending on your circumstances. Substantially better annuity rates may therefore be available rather than simply accepting the annuity offered by your existing pension provider.

    A further consideration is your current state of health and/or lifestyle. Certain illnesses/medical conditions/lifestyle choices may mean that an increased annuity is available.

  • Unsecured Pension (or Income Drawdown) is the name given to the flexible product that allows you to keep your retirement savings invested and take an income each year rather than buy an annuity. You can even opt to take just a cash lump sum from your retirement fund without receiving any income.

  • Phased Retirement - If you intend to ease yourself into retirement gradually, then you might want to consider phasing your retirement. On a regular basis, usually annually, you can use part of your pension pot to provide a taxable income, or take a tax-free cash lump sum and reduced income.


    • Both the Unsecured Pension and Phased Retirement options can only be continued to age 75, at which time an annuity has to be bought or the money transferred into an Alternatively Secured Pension (ASP).

  • An ASP is a form of Unsecured Pension Instead of buying an annuity at age 75, you can continue to invest your pension fund and receive an income within laid down limits.


    • We are able to discuss all of these options with you and help you decide the best way in which to use your pension fund to make the most out of your retirement. Other considerations at this important life stage may include:

  • Inheritance Tax Planning
  • Savings and Investments
  • Equity Release
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