An estimated 1.4 million people in the UK aged 51-65 will live to be 100!
It’s a remarkable prospect, but absolutely true. These figures demonstrate how advances in medicine, better diet and healthier lifestyle choices can make retirement longer and more productive than ever before.
All this makes it more important than ever that you make the right choices in the run up to retirement. That means if you have built up pension savings in a defined contribution, sometimes called a money purchase plan, there are some decisions you need to make before you can turn your pension fund into an income.
Think about a Retirement Happiness™ plan from us.
What you need to think about
Firstly, you need to decide whether you plan to take a tax free lump sum and, if so, how much you want to take.
Then you need to:
- Decide what product is right for you
- Choose the options that fit your circumstances
- Shop around for the best deal
Getting these decisions right is critical. If you don’t, you could regret it. That’s why many people look to someone like me to help them make the right decisions. This will usually make sense for all these reasons:
- The stakes are high. Your pension savings may represent the largest amount of wealth you may have accumulated (with the possible exception of the equity in your home)
- The decisions can be complex. The range of products to help meet your needs in retirement has increased significantly in recent years. Depending on your circumstances, the decisions you need to make may be quite complicated and few people have much experience in this area (remember most of us only retire once)
- You may have to live with any mistakes. Many of the products people use to provide an income in retirement are a one off purchase. If you buy the wrong product, you simply have to live with the consequences. Once you buy a lifetime annuity you can’t usually change it or cash it in.
Take a look at some of the products available and the options you have. If you feel you could benefit from professional advice to help you achieve Retirement Happiness™, just contact us and we’ll explain the services we offer and how we may be able to help you make the most of your retirement.
(Source – Department for Work and Pensions – Number of Future Centenarians by Age Group – April 2011)