13th March 2015 at 4:21pm
With big changes to pensions coming on 6 April, you will soon be able to access the money you’ve saved into your pension when and how you want to, if you’re aged 55 or over.
This means you can choose to take your savings as cash, take some money now and keeping the remaining amount invested in your pension so that it keeps growing or buy a fixed income, or what’s known as an annuity.
There’s no need to rush into making a decision right away – just because you’ll have more flexibility and choice doesn’t mean you have to do anything now.
There’s a lot to consider and from 6 April Standard Life will offer a range of ways to help you make your pension savings work for you.
There’s a lot to consider and from 6 April Standard Life will offer a range of ways to help you make your pension savings work for you. There’s a range of helpful tools where you can play with different scenarios and understand what’s best for you.
So what are the options available from Standard Life?
Flexible drawdown (flexible income):
Keep your pension savings invested in a range of investment options, and take an income each month. You decide how much of your savings stay invested in the stock market and how much you want to take out each month.
Annuities (fixed income):
Use your pension savings to buy a fixed income for life, or a timeframe of your choosing.
Take your entire pension savings out as cash and have the money in your bank account within days. Only 25% of this will be tax free, with the rest taxed as income.
Or a mix of these options, taking some cash, keeping some invested and buying an annuity later in life when you want to have a fixed income you can rely on.
So what’s next?
It’s now easier than ever to compare, contrast and choose your options online. You can find out more information and buy products in just a few clicks.
But if buying online isn’t for you, chatting through your options at retirement might be more suitable. Calling our Expert Centre will give you access to qualified, UK-based experts who can give you information on your retirement options over the phone. Standard Life also hosts regular retirement events where you can meet our experts face-to-face.
It’s an exciting time for pensions, and if you’re thinking about your life after work then it’s an exciting time for you too. Consider your options and find out more before making any decisions. It’s easy to find out more online or by speaking to an expert, or your financial adviser, to get information on your own situation.
This blog and any responses to comments are not financial advice. A pension is an investment. Its value can go up and down and it may be worth less than you paid in. Tax and legislation can change in the future and this blog reflects our understanding of the rules as at 12 March 2015.