Pensions and retirement options

Retirement is something that is likely to affect us all, and yet not everyone makes enough provision for what could be a long time after work ceases. Many people are members of an occupational pension scheme through their work or trades union. However, this is by no means universal and many of us need to consider making personal provision, or topping up what a company scheme is likely to provide at retirement.

After all, the basic state pension is modest to say the least and anyone earning the average wage is likely to find it very difficult to survive on an income less than a quarter of the amount they were receiving pre-retirement. An occupational pension might make a considerable difference but, unless the benefits are related to your earnings while working, there could be a much smaller pension waiting for you than you expected, because of poor investment performance. In addition, because people tend to live longer than their parents, annuity rates tend to be lower than they were 15 years ago.

We can help you understand precisely how much you can expect to retire on and then plan to bolster your income.

We are particularly well placed to advise on the massive changes brought about to pensions in April 2006, when half a century of private pension rules were swept away and replaced by a single regime. There are several pitfalls for the unwary and we can help you steer your way through the new rules.

Please note the value of investments is not guaranteed and will fluctuate. You may get back less than your original investment.

Retirement options

There are a number of choices to be made at retirement and some of these can appear quite confusing. Getting it wrong could make a significant difference to you later on, so we can help you navigate through the maze, explaining the different choices and helping you pick the right one:

  Exercise your right to go to another insurance company to arrange a higher income;

  Select the right basis for future income growth, if required;

  Ensure your widow or widower is provided for, if appropriate; or

  Consider deferring taking your income (while still accessing your tax free lump sum).