Before you decide how you'd like to access your pension savings, it's important to take some time to understand all your options.
This is because you can't always change your mind once some decisions have been made.
What are your retirement options?
There are three main ways to access your pension savings - and you can choose one or any combination of these options.
Your choices will depend on your own retirement plans, and the money you have invested in your pension plan.
Spending time looking at your options now, always helps prepare you for a better retirement in the future.
Option 1: Pension Drawdown
Pension drawdown lets you access your savings whenever you need them.
You’re in complete control so you can enjoy a regular income, or dip in and out whenever you like.
This allows you to take more money when you need it and less when you don't.
Your money is also still invested so it has an opportunity to grow.
How Does Pension Drawdown Work?
Option 2: Cash Lump Sum
You can take the money built up in your pension savings as cash from the age of 55 (increasing to age 57 from April 2028).
The first 25% of each cash payment will usually be paid tax free, while the rest will be taxed as income.Tip #3 Turn Down Your Thermostat
Option 3: Pension Annuity
An annuity can help turn your pension savings into a regular income that'll keep going as long as you need.
The amount you receive will depend on the money you’ve saved, your age and health when you retire and any extra features you might add.
Deciding the best way to access your pension savings may not be easy.
As with anything there are risks involved and so we strongly recommend you consult a professional financial adviser on the matter first.
We can help you with this.
For a free initial consultation get in touch: https://www.charlesjames.com/contact-us