If you are thinking of retiring shortly, read on
Changes to the minimum retirement age come into effect on 6th April 2010, when you will need to be 55 or over to access your pension benefits. Remember, you don’t have to stop working to take your benefits, so accessing them may allow you to retire gradually. Neither do you have to take the pension income offered by your current provider.
If you have a Personal Pension or “Money Purchase” scheme from an employer, by allowing us to review your existing pension schemes and the benefits they offer, we may be able to help you improve on the income you could get.
One of the choices that are available to you is the “Open Market Option”. This means that we can search the whole market for annuity providers to see whether you could get a better income from your pension fund. (Annuity is another term for the income you get from your pension fund). This is especially relevant if you have any health issues, or, for example, you’re a smoker, overweight, diabetic or have high blood pressure or high cholesterol. The insurance company will take these factors into account when working out how long they’re likely to have to pay you the income and if your life expectancy is decreased, you’ll probably get a higher starting income.
In addition, you might want to consider an annuity which rises each year, or add a guarantee period or dependant’s pension, although all these will reduce your level of starting income. It really is all down to you and your individual circumstances and requirements, but it can be difficult to think all this through on your own.
So contact us today for a chat with one of our advisers and let us see if we can help you find the right solution.