Andrew Stuart & Company Limited
Company, pension, Financial advisers
Which of the many ways of taking benefits is right for you?
Once upon a time, your pension plan matured at 65, you took some cash and a monthly pension for life.
Over the years, the number of ways you can take benefits has increased significantly, offering opportunities for:
early retirement from age 55
varying of payments each year
In addition, it doesn’t always make sense to take your benefits from your existing insurer- in most cases, an increase in benefits can be obtained via a transfer or the “open market option”, by moving your funds to another company.
But most people don’t have the knowledge or the patience to sort out this minefield of choices, and the wrong choice could cost you alot of money in the long run.
However we can provide the necessary guidance to ensure that the decisions you make now- which you might have to live with for the next 30-40 years, are the most appropriate.
After you have worked hard all your life, saved for retirement for the last 30 or 40 years, another hurdle you will come across is which retirement option is right for you.
When retirement time arrives, choosing what to do with your saved money requires careful thought. For many, the decision is easy – replace your work income with a pension income. It pays to choose carefully and get the best advice so you get the most out of what is generally your longest investment.
There are many factors to think about when deciding which route is right for you, some of these might be:
How big is my pension pot? Some options are only suitable for larger funds, also if the fund is only small, should you take it under triviality rules?
Do I have an adverse health issues? If you have had health problems in the past, are currently being treated for a health problems or if you are a smoker, then all of these could qualify you for an Enhanced Annuity.
Am I prepared to take some risk? Some pension options are linked to the stock market, so involve a degree of risk. Are you happy with the possibility of a larger pension fund due to stock prices rising. Similarly the fund could drop leaving you with a smaller fund value.
Call us now for an initial retirement options consultation without charge.
If you are approaching your retirement date, obtaining independent financial advice on which option is best for you may not only save you a fortune in the long run, but will also give you peace of mind knowing you made the best decision based on every option available to you. Please get in touch for Honest Effective Life Planning.
, Financial advisers
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