Making the right decisions at Retirement

Many people are struggling to fully understand their financial choices at retirement.

Like many of our clients, if you are 55 or older you may be thinking of retiring or at least wanting to understand the choices you have when you do retire.

Most people have some form of pension, but very few fully understand their pension and some people don’t even know the basics of what they have as a pension fund.

These are some of the typical questions’ clients are asking us on a regular basis.

• What age can I take my pension or money from my pension?

• I have a pension from an old employer, what will this provide as a pension?

• What happens to my pension when I die?

• Can I take a lump sum from my pension?

• How much tax will I pay on my pension?

• Will my wife get a pension if I die before her?

• Can I keep working and take some or all my pension?

• When will the state pension commence for me?

• Do I have to take my pension from the existing provider?

Question

I am 62 in January and I will be retiring from work at Christmas. I have a work pension which seems straightforward, I will be receiving a cash lump sum and a monthly pension. I also have 2 personal pensions I need advice on. I have been sent loads of paperwork with regard to these pensions and to be honest it seems very complicated and I don’t want to make the wrong decision. Can you help please?

Question

Is it me or have the world of pensions become even more complicated now? I am seriously thinking about reducing my hours at work and have had the conversation with my boss to work 3 days a week. If I do this I will need to start drawing an income from my private pensions. I find the documentation extremely confusing and would like to sit down with someone to guide me, is this something your company can advise me on?

Answer

The world of pensions has indeed changed dramatically over the past few years, when the Pension Freedom government rule changes commenced.

At retirement people have many paths they can take now with regard to their pension funds and the way pension income can be taken in retirement. Everyone has different financial needs at retirement so therefore there is not a single answer for everyone.

Here at Brian Mole IFA Ltd we offer a completely independent, personal service to all our clients both new and old at retirement. We understand this time of your life is very stressful and you don’t want to make the wrong decision with your pensions. One of our independent pension advisers will guide you throughout your retirement process.

If you are nearing retirement why not speak to us? We offer a no obligation, FREE meeting to discuss your pension position. This meeting is at your convenience, at your home, work or our offices.

Brian Mole Independent Financial Advisers Ltd Independence House, 26-27 Bridge Street, Burton upon Trent, DE14 1SY