Taking money out of your pension carries risks. There is a chance that you will outlive your money or that the value of your pension will decline. Before making a decision, you must ensure that you understand all of the risks.

OPTIONS FOR USING YOUR DEFINED CONTRIBUTION PENSION IN RETIREMENT

• Keep your pension savings where they are –and take them later.

• Use your pension pot to buy a guaranteed income for life or for a fixed term – also known as a ‘lifetime’ or ‘fixed term annuity’. The income is taxable, but you can choose to take up to 25%(sometimes more with certain plans) of your pot as a one-off tax-free lump sum at the start.

• Use your pension pot to provide a flexible retirement income – also known as ‘pension drawdown’. You can take the amount you’re allowed to take as a tax-free lump sum (normally up to 25% of the pot), then use the rest to provide a regular taxable income.

• Take a number of lump sums – usually the first 25% of each lump sum withdrawal from your pot will be tax-free. The rest will be taxed as income.

• Take your pension pot in one go – usually the first 25% will be tax-free and the rest is taxable.

• Mix your options – choose any combination of the above, using different parts of your pot or separate pots.

A pension is a long-term investment not normally accessible until age 55 (57 from april 2028 unless plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. Tax treatment varies according to individual circumstances and is subject to change.

Please contact us for more information on how we can help protect your future financial well-being and the options available to you.