Pension from age 55

 
Home » Services » Let’s Retire » Pension from age 55

Taking Your Pension Early, from age 55

You can access your private pension/s after your 55th birthday as long as it is from a UK source. How you take your pension will depend on the type of pension scheme your money is invested in.

The Pension House can advise you of the options available and guide you to the option that most suits your needs. At the time of taking your pension you can choose to take some of it as a cash lump sum that is tax free.

This is generally 25% of the pension fund; however the amount does vary between different types of schemes. The Pension House will advise you of the maximum amount available to you from your schemes.

Do take financial advice, most people need to. It doesn’t have to be expensive and it could save you money in the long run.

Contact us today without obligation. It can’t hurt to speak to someone who specialises in this area of expertise. If we can’t add any value to your situation we will tell you. You can also access free guidance from PensionWise; but they won’t tell you which option is best for you.

How we can also help

As you can see there are many options when considering taking your pension. It is not easy for the ‘lay person’ to determine which option is the best fit for them.

Or indeed if any of the options are a good idea for them – as drawing a pension will mean having an income and this could disturb any means tested benefits.

Also, if you are considering taking a pension earlier than expected it will almost certainly mean that you will have less income in retirement.

 

There are a number of options:

Once you have decided how much cash to take you then need to decide what to do with the remaining balance.

1

Occupational Pension or Final Salary:

The rules of each scheme will determine how the pension benefits can be taken. Some are more flexible than others and Final Salary pensions usually offer very valuable benefits.  It may be in your best interest to take the pension from the scheme on the terms offered. The Pension House can engage with your scheme administrators on your behalf and explain the benefits to you and any flexibility within the scheme and then advise you if it’s possible to improve on the terms by using an alternative arrangement.

2

Lifetime Annuity:

Swap your pension fund for a guaranteed income for lifeThe Pension House can shop for the best annuity for you on the open market. For more information about annuities skip to What is an annuity.

If you take medication or have a health issue you may qualify for an Enhanced Annuity.

 

3

Flexi Access Drawdown:

The income is taken from your pension fund as and when you require it. Your pension fund remains invested. The Pension House are Independent Financial Advisers and have access to the whole market of product providers. We can select the plan that best fits with your needs.  We will explain how the drawdown concept works and guide you through the options available within a drawdown plan. We will advise you of the best basis to set up the plan to suit your needs and circumstances and explain all the risks.

 

4

Phased Retirement and Uncrystallised Fund Pension Lump Sum (UFPLS):

Your income is phased in over time; that part of your pension that has not yet been drawn will remain invested.
The Pension House can
explain how the phased retirement concept works and guide you through the options available to you. Again, we will advise of the best basis to set up the plan to suit your needs and circumstances.

 

 

5

Fixed Term Annuity or Short Term Annuity:

These products can be useful if you do not want to lock into a lifetime annuity, but you also do not wish to take investment risk as with the Drawdown or Phased Retirement options above. There are a number of these products on the market; they vary in how they work.  It would be important to seek advice if you were considering this option. The Pension House will explain how they work and if any are suitable to meet your needs.

FOUR RETIREMENT OPTIONS

Pension from age 55

You can access your private pension/s after your 55th birthday as long as it is from a UK source. How you take your pension will depend on the type of pension scheme your money is invested in.

Cash from pension

Are you looking to take just the cash from a pension – sometimes called Tax Free Cash or Pension Commencement Lump Sum There are a number of options on how to take cash from your pension.

What is an Annuity?

An annuity is an income for life and it stops when you die – so it is important to get the most value out of your pension fund when buying your annuity. There are many options/styles of annuity.

Enhanced Annuity

An Enhanced Annuity or Impaired Health Annuity pays a higher income for those with medical conditions and for those with a smoking or drinking lifestyle that it may reduce their life expectancy.

discover our services

Pension assessment

This is where we carry out an assessment of your existing pension plan/s and forecast your benefits to retirement. We will then be able to advise whether you have sufficient savings to meet your needs.

Let's retire

Are you ready to start taking your pension benefits? We can help you to understand and consider all the options available to you at retirement and steer you through the process and help you choose the most suitable option.

Workplace pension

Struggling to attract and retain the right staff? Finding it hard to ‘talk pensions’ to your employees?
We can provide a scheme review and audit as well as helping you to communicate the pension scheme.

See what people say about us

Guiding and advising clients is our passion

Get In Touch

4 + 13 =