When it comes to your Pension, you have a lot of personal choices. Depending on your current income and lifestyle, you may wish to retire at a different age from your colleagues. On top of that, it is possible to claim your pension as a lump sum, take out an annuity or even use an income drawdown. Each of these options comes with its own benefits and disadvantages, and it will depend on each individual’s personal situation.
Whatever you plan to do after retirement age, you should find out now how you plan to be financially stable in this stage of your life. Talk to one of our pension advisors UK today for your options. For more, free pension advice, use our Retirement Planner Tool now.
The State Pension Age
One thing you need to decide is when you want to retire. Many people opt for an early retirement, although this is not possible for those of every background. If you stay until the State Pension age, this currently stands at 65 for men and is increasing from 60 to 65 for women too. In 2019, the State Pension age will rise to 66 for everyone and will increase further over the years 2026-2028, from 66 to 67 years old. This could change, but as it stands, the State Pension age is only set to increase. This is why we recommend saving now, and you may be able to afford an Early Retirement and a comfortable lifestyle.
Flexibility when it comes to pensions
At this moment in time, your employer has to automatically enrol you into a pension scheme as soon as you are eligible, as well as make the necessary contributions from your pay. You can also choose to set up a pension scheme by yourself. This can often end up meaning you earn more money per week post-retirement.
That said, the State Pension will be rising from the current maximum of £125.95 per week to £164.35 per week if you are:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
Pension Options To Consider
There are many different options when it comes to choosing a pension scheme or plan that works for you and your family. You can:
- Buy an annuity
- Use pension drawdown
- Cash in your pension
- Take various lump sums
It is important to make sure you get the pension that works best for you. You could be paying a lot more money than you would need to in fees, due to not taking as much time to look into different types of pensions. If you have had a number of different jobs, consider managing them all in one combined fund with a Pension Transfer. Talk to a pension advisor for more on what each of these options might mean for you.
For More Free Pension Advice
Remember you can always use our Free Retirement Planner Tool to receive free pension advice from one of our pension advisors UK.