Traditionally, there used to be only one option when it came to using the funds you had saved for retirement in money purchase pension plans. You had to use your entire pension fund – less any used to provide tax-free cash – to buy a pension, through the purchase of an annuity.
Over many years, thanks to changes in legislation, more modern and flexible alternatives have appeared – alternatives, which allow you to take control over your future.
By considering each of these options in turn we should be able to identify the most suitable choice for you and ensure that your retirement income can be tailored to meet your needs over the coming years.
The main options that are currently available are as follows:
- Annuity (Guaranteed, impaired life, enhanced, investment linked and capital protected)
- Phased Retirement
- Hybrid Schemes
- Flexible Income Drawdown (which replaced Capped Income Withdrawal from 6th April 2015)
- Combined Phased Retirement/Income Drawdown
- Entire fund access (UFPLS )– Pension Freedom