Make the most of new flexible pension rules
There will essentially be 5 main options available to you:
- Leave your pension pot untouched
- Leave it invested
- Get a secure income – known as an Annuity
- Get a flexible income – known as Drawdown
- Cash in your whole pot – may be subject to a considerable amount of tax
- Mix the options – either now, or at some future point in time
You now no longer have to buy an annuity when you retire and the drawdown options have been extended. It is even possible to take your entire pension out as cash, but you should be aware of how much tax you will pay if you do so.
Benefits can generally be taken from age 55 (or earlier if you are retiring on ill-health grounds or have a protected retirement age). The minimum pension age is due to increase to age 57 from 2028 and will then increase at the same rate as the increase in state pension age thereafter.
If you are unsure of your retirement planning choices talk to one of our financial advisers before cashing in or moving your hard-earned pension savings.
The value of your investment can go down as well as up and you may not get back the full amount invested.