Most employers are obliged to have an occupational pension scheme for their employees There are two main types of occupational workplace pension schemes: Defined-contribution schemes A defined-contribution (DC) or money-purchase pension scheme is one that invests the money you pay into it, together with any employer’s contribution, and gives you an accumulated sum on retirement, with […]

Withdrawing any amount of money from your pension pot Flexible drawdown is a special form of drawdown under which any amount of money can be withdrawn from the pension pot. There are two requirements you have to meet before undertaking this option: you must meet the minimum income requirement (MIR) and you must have stopped […]

How to use your pension pot for the years ahead As you approach retirement, you will have to decide how best to use your pension pot for the years ahead. One of the ways of doing this is by entering income drawdown. Unlike an annuity, with income drawdown, your money remains invested and you take […]

Choosing the right option for you In the UK, there are basically two types of annuity:

The lack of professional financial advice can be costly You only have one opportunity to shop around for your annuity. This is called ‘exercising the open market option’. Once you have committed to an annuity provider and started to receive an income, the decision can’t be reversed.

Deciding what to do with the pension pot you’ve built up If you save through a private personal pension, when you approach retirement age you’ll have to decide what to do with the pension pot you have built up. If applicable to you, one option is to buy an annuity. It’s important to find an […]

A limit on the amount of tax relief you’re allowed You can save as much as you like into a pension, but there is a limit on the amount of tax relief you’re allowed. From 6 April 2014, the Lifetime Allowance for pensions reduced from £1.5m to £1.25m. In essence, the Lifetime Allowance is intended to cap […]

Coming to terms with the realities of your later years f you’ve not thought about planning your retirement yet, don’t panic. We can discuss the different options available to you. This may include a personal pension, or a defined contribution pension. If appropriate, your provider invests the money you pay in and gives you an […]

A regular income once you reach State Pension age The State Pension gives you a regular income once you reach State Pension age. It is based on National Insurance contributions and the amount you get depends on how much you paid in. To receive it, you must have paid or been credited with National Insurance […]

Looking forward to a secure and financially independent retirement Saving for your retirement may not seem important when you’re starting out. But the sooner you start saving for your retirement, the more secure your future will be.