Pensions

Saving for your retirement is a very important part of financial planning. Most people spend their working lives dreaming of their retirement, however, unless they have made proper pension provision, that retirement might unlikely to be as idyllic as they hoped.

At Platinum Advice we offer an array of affordable retirement solutions from setting up a pension, monitoring and reviewing your funds and accessing your retirement benefits. There are various ways of accessing your retirement pot and, currently, the most commonly used are:

Income Withdrawal

Utilising Income Withdrawal at retirement allows you to take an income from your pension pot while the pot remains invested. You can choose how much pension you want to be paid each year with no limits. All income is subject to income tax at your appropriate rate for the tax year in which you recieve any income. You can receive a regular income monthly, quarterly or annually and you can even take it all in one go, which gives you a great amount of flexibility to be able to meet your income needs.

Annuities

An annuity is a regular income paid in exchange for a lump sum. At retirement the pension pot you have amassed is essentially given to a provider in return for a regular income for the remainder of your and/or your spouses life. You can add options onto the annuity such as an increasing income each year or guarantees but ultimately the concept remains the same. One benefit of annuities is that the ‘guaranteed’ nature of them in that you know you are to get an income regardless of market conditions.

An annuity is a regular income paid in exchange for a lump sum. At retirement the pension pot you have amassed is essentially given to a provider in return for a regular income for the remainder of your and/or your spouses life. You can add options onto the annuity such as an increasing income each year or guarantees but ultimately the concept remains the same. One benefit of annuities is that the ‘guaranteed’ nature of them in that you know you are to get an income regardless of market conditions.

Pension Legislation changes
Changes in pension legislation have now come into force whereby you now have access to your full pension pot. This may have an effect on your future pot of money and any possible income you receive now and in the future. It is important that you seek independent financial advice on your options to determine the most suitable for your personal circumstances.