Confused about how to get the most from your pension?

Deciding how to access your pension as you approach retirement can be daunting.

Do you choose to take advice or gather the information and make your own decision? Do you opt for an annuity or drawdown? And are there any other options available to you?

Through the recently launched Mail Finance Retirement Planning service, we provide you with access to all the information, expert advice and guidance to help you explore your pension options and decide on the best solution for your individual situation.

What is pension guidance?

Depending on the size of your pension pot, guidance can be a costeffective and sensible way to gather all the information, get some help with paperwork and answer your questions but ultimately you make the end decision about the route that you choose to go down.

There is no cost to you for the guidance service from Mail Finance Retirement Planning, the specialist will explain all the options and help you with the paperwork. We are paid a commission from the provider you have selected through our service and this will have been factored into your plan.

How do I know if I need advice?

Advice could be suitable for you if you want the peace of mind of having an expert look at your personal circumstances, your goals for retirement and attitude to investment risk. The advisor will then provide a tailored personal recommendation on the most appropriate solution, or solutions, for you that is tax efficient and protects you and your loved ones.

Through the Mail Finance Retirement Planning service, we are so confident in the advice given that the review and report are free of charge, we only charge a fee if you choose to go ahead with the recommendation. The fee starts from 2.25 per cent of your pension savings after tax-free cash has been taken subject to a minimum of £1,495.

What are my options?

1. Guaranteed income for life (Annuity) The lifetime annuity is the only product on the market which guarantees an income for the rest of your life – even if your provider goes bankrupt. However, once you buy a lifetime annuity, it can’t be amended.

2. Guaranteed income for a fixed time* (Fixed-Term Plan)

Sometimes called a fixed-term annuity – does what it says on the tin and provides a guaranteed income for a fixed period of time between 1-25 years. This is a flexible alternative to a lifetime annuity.

3. Flexible access (Drawdown)

Drawdown provides the flexibility to allow you to take a regular income and decide when to take your tax-free cash. It also provides protections built in as standard, so your fund doesn’t die with you and can be passed on to your loved ones. However, it needs careful management as investments may rise or fall and you may not get back what you put in.

4. Partial or ad-hoc cash withdrawal (UFPLS)

The technical name is uncrystallised funds pension lump sum or UFPLS for short. This allows you to leave your pension where it is and withdraw your money in chunks made up of 25 per cent tax-free cash** and 75 per cent taxable income.

5. Full withdrawal

And the final product option is full cash withdrawal – taking your pension in one go, which may seem appealing but could also attract a hefty tax charge and will mean you won’t receive a regular income during your retirement. *There are no guarantees of the income you could purchase with any maturity value received at the end of the term, as this will depend on economic and investment conditions at that time. **The amount of tax-free cash that you can take may fluctuate depending on your circumstances. Withdrawing cash from your fund could potentially reduce your future pension income. Please note this information is based on our current understanding of tax legislation, which may change.