Your retirement income now and later
Pensions will probably be a part of your retirement income and you can access them at different times and in different ways. But you might want to look at other ways to boost your money too, especially if you’d like to leave something behind for loved ones, or put some funds aside for care costs that might be needed later on. We’ll look at your current plans and ways you could withdraw some of your money to use as income, and regularly review your retirement fund to try and make sure it suits your needs, especially if your circumstances have changed.
Claiming your state pension
When you reach state pension age, you’ll be able to claim your state pension, if you’re eligible, even if you’re still working. You’ll get a letter from the Pension Service telling you what to do a few months before your pension age. It’s worth checking your national insurance record at gov.uk to get an idea of what you might be entitled to.
Claiming workplace and personal pensions
Depending on your provider, you’ll usually be able to access personal and workplace pensions from age 55 onwards and 25% of the pot will be tax-free.Your pension provider will give you options around how you’d prefer to have it paid. Check gov.uk for information to find out more about the options.
For flexible retirement solutions such as drawdown, your capital is at risk and you may get back less than you originally invested. The value of investments and the income from them may fall as well as rise. If you choose to use your retirement funds as income (drawdown), and you take too much too quickly, your funds could be depleted or you might run out altogether, so it might be worth speaking to a financial adviser before making any decisions.
It doesn’t cost anything to see if we could help you with your retirement plans. Call 0800 731 5342 for a free initial chat to see if you could benefit from financial advice. There’s no obligation to act- our No Pressure Promise makes sure of that. You won’t incur any charges unless you act on our recommendations.
Pensions aren’t the only way to save for retirement, so if you’d like to discuss ways you might be able to boost your retirement funds on top of saving into a pension, we might be able to help.