There is plenty of help out there

Campbeltown Courier - - MONEY MATTERS -

The good news is that there are plenty of op­tions that you can choose for your pen­sion. No two peo­ple’s lives are the same, so it is good to mix and match these op­tions to suit your own unique needs. The bad news is that is that there are plenty of op­tions you can choose from for your pen­sion and mak­ing those choices can be daunt­ing. That is why it can­not be stressed enough that you should con­sult an ex­pert. You can leave your money in­vested in your pen­sion pot un­til you need it. OR

You can use your pen­sion pot to buy an in­sur­ance pol­icy that gives you a guar­an­teed in­come for the rest of your life. This is called an an­nu­ity. Or you can take 25 per cent of your pot as tax-free cash and buy an an­nu­ity with the other 75 per cent. Or go for an ad­justable in­come when your pot is in­vested to give you a reg­u­lar in­come. You de­cide how much to take out and when, and how long you want it to last. There is also the op­tion to take smaller sums of money from your pot un­til you run out; your 25 per cent tax-free amount isn’t paid in one lump sum, you get it over time Or you could take your en­tire pen­sion pot in one go and cash in your en­tire pot; 25 per cent is tax free, the rest is tax­able. If you de­cide to do this then make sure that the ad­vice you have taken is very, very sound. With so many op­tions, and per­mu­ta­tions of those op­tions, it makes sense to seek ad­vice. If you go down the path of seek­ing pro­fes­sional fi­nan­cial ad­vice then make sure you use an In­de­pen­dent Fi­nan­cial Ad­vi­sor. In the UK, reg­u­lated fi­nan­cial ad­vice can be ei­ther in­de­pen­dent or re­stricted; re­stricted means the ad­vi­sor can only rec­om­mend cer­tain prod­ucts or prod­uct providers. In­de­pen­dent Fi­nan­cial Ad­vi­sors are reg­u­lated by the Fi­nan­cial Con­duct Au­thor­ity and the ad­vi­sor must meet strict qual­i­fi­ca­tion and com­pe­tence re­quire­ments.

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