Personal pension choices

Since July 1995, members of money purchase schemes have had a much wider range of benefit options at retirement. For example, a member of a personal pension scheme can from age 50 decide to purchase an annuity or to take income withdrawals from their scheme. Most personal pension schemes are set up with multiple arrangements (often 1,000 or more) to permit greater flexibility as members can decide to draw benefits from some or all of their arrangements.

Approaching retirement 

However, this flexibility means that, if you are a member of a personal pension scheme approaching retirement, you have many choices to make. These include:

• should you draw retirement benefits in respect of all or only part of your scheme?

• should you purchase an annuity and/or take income withdrawals?

• if you purchase an annuity, what type of annuity should this be? For example, should it remain level in payment or increase in payment each year? Should provision be made for a pension to continue to your spouse in the event of your death or should it be payable for your lifetime only?

• if you elect to take income withdrawals, what level of income should you take?
  
  
  

Levels, and bases of, and reliefs from taxation are subject to change

It is important that you understand each of the options available to you and what the implications are. We can assist you with a complete independent assessment of your situation, enabling you to make an informed decision. Please e-mail or contact us to discuss your options further.