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Your pension options at retirement

For most of us, the days of a guaranteed pension for life from our employer are gone.

If you’re reading this, your pension options at retirement are probably more complicated.  These days, you have several choices to make use of your defined contribution pension pot.

Most people have built up a ‘defined contribution’ pension fund over their working lives.

Defined contribution means that the amount you’ve put in is certain, but what you’ll get out is not.  That’s why. it’s important to think through your investment decisions carefully.

How income in retirement works

Income in retirement will usually come from a handful of sources: the pension pot you’ve built up over your working life, your other savings and assets, and the State pension.

For most people, the biggest decision is working out what to do with your pension pot at retirement.

In general, you’ll have three main options: should you purchase an annuity, invest in an approved retirement fund (ARF), or take a tax-free lump sum?

The hard bit is deciding how to mix and match these choices to come up with the option that suits you best.  Talk to us about how to plan your decision.


Read on: Annuities