The pensions world continues to change, improving ways you can take pension benefits at a time when annuity rates continue to fall. Some of the major changes introduced in the 2014 budget surround the flexibility of how much people can take from their personal pension plans. Basically, these changes allow people to take what they want when they want from their personal pension plans. Never before has the need for quality pension advice been more profound.
Many consumers are still unaware of the different options available to them when they decide to retire and accept the pension plan offered by their pension provider. We specialise in looking for the most suitable pension for our clients based on their marital status, lifestyle, health and age as well as contacting those providers that specialise in enhanced and impaired annuities along with exercising the Open Market Option if a better pension income can be provided elsewhere.
There are many types of annuity depending on your personal needs. There are some that allows you to access pension commencement lump sums (PCLS) and an income whilst the funds remain invested and others where there is no further investment risk by removing the fund from the investment environment.
In some cases, if the total fund value of all a person’s pension is below £30,000 up to 25% of the fund can be taken as PCLS with the remaining fund taken as cash but taxed as earned income and is known as a triviality. Once again, if this should be the case, we will complete the necessary paperwork on your behalf.