For the over 55’s, there are several options regarding how to take retirement benefits, each with different positive aspects and drawbacks. Check out the options below.
Buying an Annuity
An annuity is an annual retirement income that is paid to you for the rest of your life, by exchanging a lump sum for a regular income. There are various options available when purchasing an annuity, including the type of annuity you need and where you can buy it from.
For more information on buying an annuity, download our free Buying an Annuity fact sheet here.
Income drawdown is an option for those who do not wish to purchase an annuity. Income Drawdown plans allow you to withdraw both income and tax-free cash payments as and when you want them.
For more information on Income Drawdown, download our free Income Drawdown fact sheet here.
Take the Cash
You can take the whole of your pension pot as cash. The first 25% will be tax free, the rest will be taxed at your marginal rate.
For more information about taking your pension as a cash payment, including the benefits and consequences of doing this, download our free Take the Cash fact sheet here.
For fresh and clear
Book your financial review
with the Clark and John Financial Services team.