Updated : Sep 11, 2019 in Articles

Pensions explained: Peter talks retirement options for Unbiased

so now you got this pension saying you
paid into all your working life so what do you do with it well you can take the money out any time
from the age of 55 but remember it’s got to last for the rest of your life. That
could be 35, maybe more years. There are several ways you can withdraw it. The first thing is you can take out quarter tax-free alternatively you may have been planning that dream holiday all your life and that money will pay for it after that you have two main options you could buy an annuity this pays you a guaranteed
income every year of your life the only problem with that is that it may not be paying you enough alternative to that is to set up a drawdown scheme this is
where your pot is invested and you withdraw as much money as you want when
you want to the downside here is that you may take out too much and your pot your investment pot actually diminishes
the other problem is that you’re at the behest of the stock market and if it
does badly then so does your investment and other thing to bear in mind is tax
yes pensioners also have to pay tax and if you take out more than your annual
allowance you will be taxed and if you take out a large sum then it’s going to be a really big tax bill and that’s something to bear in mind tensions can be very complicated things
which way to go is it a drawdown is it an annuity is it a combination of the two for your tax-free lump sum what do you do with it really the best thing to do is to get impartial professional advice from a
financial adviser

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