Understanding your retirement pension income
If you plan to retire in the next few years, you need to start thinking about how to get the most income from your pension fund. Most of us assume that our pension funds will automatically kick in and start paying out when we retire. But the fact is that you will have to decide where to invest your pension fund, and how you want to draw your income. This site will help you understand what’s involved, outline your options, and answer some of the questions you may have. That way you can make an informed decision on what is right for you.
When can I start taking retirement benefits?
You can typically take benefits from your pension between the ages of 55 and 75.
How can I get a regular income from my pension plan?
There are a number of ways to get a regular income from your pension plan. Annuities are the most popular, and this site explains them in detail. Read our annuity guide to understand your retirement options further >
The Open Market Option
Just before you are due to retire you will receive information from your current pension provider, or providers, outlining details of your pension fund(s) and anticipated value(s). This will also include a quotation on an annuity that details the annual income they are prepared to offer you. The quote is your chance to use the Open Market Option and shop around to get the best possible income in retirement. It will let you compare which annuity provider is offering the best deal to meet your particular circumstances.
Did you know that 65% of people still purchase annuities from the provider that they have also saved their pension with. (Source: Reuters)
These policy holders may not realise that they can choose whichever annuity provider they wish, to receive the highest income for the future. This can obviously make a huge difference to your lifestyle with the amount of income you receive.
Obviously the most time consuming element to this exercise, for you, is the research into all the various quotations that all the major providers offer. Alternatively you can use our free no-obligation quote service which will put you in touch with a financial advisor with access to products and rates from one of the leading providers in the market today. This could help you find a better rate for your circumstances and increase your retirement income.
It’s important to understand that annuities offer a range of options and benefits to suit your needs. Read our guide to understand the various options available >
