Making the best of your pension fund

Building up a retirement fund throughout your working life is not easy, but once you have managed to secure a reasonable fund, and you are considering taking your benefits, it becomes very important that the right choices are made. The decision used to be just a simple choice of purchasing an annuity, but now there are other ways in which you can provide an income from your pension fund, namely:

• Traditional guaranteed annuities (standard and enhanced rates)
• Investment backed annuities
• Flexible annuities
• Income Drawdown
• Phased Retirement
• Occupational Drawdown

Whilst these routes can provide a more flexible approach to receiving retirement income, they may not be for everyone. It is important that you receive professional advice from experienced advisers when considering these alternatives. Talk to John Tamblin today on 01539 741191.

NB. The value of pension and investments and the income they produce can fall as well as rise. You may get back less than you invested

About Annuities
Annuities usually buy you a guaranteed regular income for the remainder of your life. Basically, they are arrangements that provide a regular fixed or increasing income paid in exchange for the funds built up in your pension fund(s).

There are companies that specialise in enhanced annuities; they are based specifically on any health or lifestyle conditions you may have, which means these companies can offer higher rates compared to standard annuity providers. Qualifying for an enhanced annuity could mean an increase in your retirement income. Whether you could receive more or less than this depends on the specific health or lifestyle condition(s) you have.

Lifestyle factors such as smoking and drinking, or relatively mild health conditions such as high cholesterol may qualify as well as more severe conditions such as certain cancers and types of heart disease.