What to do when you want your pension

Arguably, the worst decision you can make at retirement is to accept the benefits offered by your current pension provider. You can often get more income, and more flexibility in the choice of benefits, by moving your pension fund to another provider. You must always SHOP AROUND before you sign on the dotted line.

CHECK YOUR PENSIONS NOW USING THE LINKS BELOW.

If you’re at least 55 and you’re urgently in need of money, drawing cash from your pension using pension release is definitely worth considering.

Checking annuity rates before you retire could be the most profitable thing you do. It’s vital you check rates before you give up your pension fund.

If your fund is over £100,000, instead of buying an annuity, you could retain your pension fund and select flexible income drawdown.

YOUR DECISION TO GO FOR PENSION RELEASE, BUY AN ANNUITY, GET THE BEST ANNUITY RATES, OR TAKE DRAWDOWN WILL AFFECT YOUR INCOME FOR THE REST OF YOUR LIFE.

 
You don’t have to wait until you stop work to draw the benefits from your pension.

In difficult economic times, you may need money before you reach your expected retirement age. If you’re at least 55, you could consider unlocking tax free cash with pension release. But it goes without saying you “can’t have your cake and eat it”. Simply said, if you spend your money now, it won’t be there for you in the future. However, it could be a valuable lifeline if you’ve drawn a blank raising money in all other areas.

Assuming all is well, your pension fund will continue to grow until you decide to stop work. From this point on, the chance of you building up further sums of money has all but gone. THE MONEY YOU HAVE TODAY HAS TO PROVIDE YOU WITH INCOME FOR THE REST OF YOUR LIFE. Hopefully. And that makes your decision vital, particularly as ONE OF YOUR OPTIONS CAN’T BE UNDONE. EVER! Get it wrong, and over the years, it could cost you an absolute fortune.

If you’ve built up very little in pensions, you might be eligible to a refund of your fund. However, the money you receive is taxable, which can put a big dent in the net amount you’ll get. As it’s income you’re looking for, invariably, you’re better off making the most of what you’ve got, no matter how small, by taking the first of the two main options outlined below. But if a refund suits you better, talk to your provider and see if you’re eligible. Here are the two main options.

1 Buy an annuity in exchange for your pension fund.

 
Once you’ve bought your annuity, you can’t change your mind. So HERE’S THE BIG PIECE OF ADVICE. SHOP AROUND.

The difference between the highest and lowest annuity rate can be as much as 40%, if your health is poor. If you don’t SHOP AROUND and end up without the best rate, it’s the same as throwing away nearly half your working life of savings. Why would you do that?

Your provider will send you a quote with, at best, one or two options BUT UNDER NO CIRCUMSTANCES SHOULD YOU ACCEPT IT until you’ve SHOPPED AROUND. That’s because there are over 100 different ways of setting up your annuity. You can include features like a spouse’s pension, an increasing income, a guarantee it’ll be paid out even if you die early, and on and on. You won’t get all these features offered on a standard quote. And you need to know what they’ll cost before you make your decision.

What’s most important to establish is whether your provider is offering the best rates on the day. They changes daily, depending on whether a provider wants to attract in pension fund money, or not. If you’re with the wrong provider, you lose, so you must SHOP AROUND. Switching between providers is FREE, so you have ABSOLUTELY NOTHING TO LOSE BY SHOPPING AROUND and moving your money to a provider that’ll give your more income.

And if you haven’t yet worked out that you must SHOP AROUND before you buy your annuity, the most financially important day of your life, it’s worth repeating once again.

DON’T BUY YOUR ANNUITY UNTIL YOU’VE SHOPPED AROUND. You’ll find a link below to establish the highest rates for just a few minutes of your time online.

2 Keep your pension fund invested and select drawdown.

 
Drawdown should only be considered if you have more than £100,000 in your pension fund, after you’ve drawn your tax free cash. That’s because it’s a much riskier and more time-intensive method of generating your retirement income, compared with the one-off purchase of an annuity.

Full details about drawdown can be found by following the link below. But before you opt for it, get an ANNUITY QUOTE so you can make a direct comparison with the simple option.

This section called DRAW YOUR PENSION is about the things you can do to get the most out of your pension after all those years of saving.

Release tax free cash from your pension »

FOR EVERYONE: shop around for the highest annuity rates here »

IF YOU HAVE OVER £100,000: to find out about drawdown »