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.
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.
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.
Swap your pension fund for a guaranteed income for life – The 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.
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.
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.
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
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We can provide a scheme review and audit as well as helping you to communicate the pension scheme.