I understand that there a number of options when approaching retirement?
although your qualified independent financial adviser will talk you
through the options which should meet your personal requirements, we have
listed a summary of some of the more common option which are subject to the
various limits and regulations laid down by HMRC and pension scheme rules:-
>
Elect to take a tax-free lump sum (if the rules of your existing
pension allow this) of up to 25% of the total and then use the remaining
monies to buy a reduced pension annuity for the rest of your life; and
receive your retirement income payments either every month, 3 months, 6
months or every year, in advance or in arrears. ( pension annuity)
>
Consider an annuity which starts with a smaller retirement income which
increases each year by a fixed percentage; ( escalating annuity)
>
Consider an annuity which starts with a smaller retirement income which
increases or decreases in line with inflation. ( escalating RPI annuity)
>
>
Consider your partner’s financial future after your death and taking a
smaller retirement income for yourself in exchange for an ongoing payment to
your partner until their death; ( joint life annuity)
>
Consider starting with a smaller retirement income but with
a guarantee that it will be paid for an agreed period ( five or ten years )
even if you die before then; ( guaranteed annuity)
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by: Annuity Advice on Sunday 24/02/13
