When can I retire and how?

For some of us this may not come soon enough and for some they may not wish to give up work completely, however since pension freedoms came along in 2015, we have had much more choice when it comes to retirement and how to take the benefits that you have been building up over your working life.

We no longer have to use the money we save into a pension to buy an annuity (an income for life or fixed term). We can choose when we retire with the state pension age not dictating when we finally finish working, depending upon your situation and circumstances.

Ask the questions that are on your mind?

Are you concerned about the amount of money in your pension pot? If you have multiple pots, are worried about how they are working for you, what this might provide for you in retirement, or if you have never or haven’t recently reviewed these pots. Blackthorn Financial Services Ltd can help, we are experts in pensions and can review these with you in order to create a bespoke plan for your retirement.

Retirement Strategy

At Blackthorn Financial Services Ltd we develop a retirement strategy with you. Starting with a full review of your existing pension arrangements then looking at the likely benefits you would achieve when you retire and showing the kind of retirement income you might be able expect based upon your current circumstances. We will then put a bespoke strategy together to help you achieve the goals you have set for your retirement. This will be based upon the available funds, future contributions, your views upon risk and the time left before your chosen retirement and other market factors.

Contact us to discuss your Retirement Strategy.

How will you use your pension pots in retirement?

The default option of years gone by was to buy an annuity when you reached retirement. This generally involved giving your pension pot to an insurance company in return for an income for life. There was some scope to shop around for the better incomes and additions that could be included with the annuity but this generally meant seeking advice, which a lot of people did not.

A popular current alternative is drawdown, where your pension pot remains invested and hopefully will continue to grow, and where you can draw out as much as you wish each year. It is up to you how large your income is, although the more money you take out, the faster the pot will shrink and the more potential tax you may have to pay on your income.

Drawdown could be a more flexible way to use your pension pot, allowing you to draw more in future years to cope with life events rather than being solely reliant upon a level of income being paid out to you, although if too much is taken this could mean that your pot runs out.

Annuity or drawdown, what’s best for you and your situation?

Deciding on the best way to use your pension pots at retirement is definitely a reason for seeking professional advice. It could be that the route that is right for you is the traditional annuity, maybe the newer drawdown or perhaps even a combination of both to drive the retirement that you desire. At Blackthorn Financial Services Ltd we have supported lots of clients through building their pension pots to taking the benefits from them and supporting them through retirement.

Contact us to discuss your how to access or manage your pension benefits.