Deciding how best to take the benefits from your pension can be one of the most important financial planning decisions you make. The wrong decision could have a huge impact on your lifestyle in retirement. A holistic approach is important when taking in to account your financial needs in retirement, combined with other assets you have accumulated and the way your pension will integrate with these assets.
It is also important to take into account the tax efficiency of your investments and pension income to maximise your income in retirement, but also to help limit tax that could be payable on death. Opus Gold will perform an in-depth evaluation of your overall situation and advise on the best way to take benefits from your pension taking into account your individual circumstances. This is a complex area of financial planning and we have the experience and qualifications to provide you with appropriate and reliable advice. We can also refer you to a specialist for advice in more technical areas such as Occupational Pensions, which may have an entitlement to higher tax free cash than a Personal Pension.
All clients have individual needs and desires when they retire. Some wish to fully retire, but an increasing number of people are choosing to retire gradually; for example those who may have sold their business and embarked on a part-time consultancy role before fully retiring. The experience we have gleaned from helping numerous clients retire happily over the years will help you to fulfill your own retirement goals. We provide a bespoke service and your retirement options are best discussed as part of your consultation. However, the following is a brief summary of some of the main retirement options.
Drawdown is also known as unsecured pension. It provides more flexibility but is a higher risk alternative to an annuity and is not suitable for all clients. As such we at Opus Gold would recommend you seek individual advice in this area. The funds remain invested and an income is drawn directly from the pension fund. This enables you to continue to benefit from investment growth, however, the fund will be subject to market fluctuations. You can vary the income withdrawn at any time. The death benefits from drawdown are also more attractive when compared to an annuity which can be very important to clients.
There are different types of drawdown:
Both the Phased and Tailored Drawdown prevent you from having to commit to taking your full pension from your fund all at one time. This also improves death benefits and is very Inheritance Tax efficient.