Retirement Benefits

Retirement planning services in Evesham

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. For advice on retirement plans, contact us at Michael Williams Financial Services Ltd.

Retirement benefits

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.
Investment and pension advice

Lifetime annuity

When you decide to take pension benefits, for so long, the only option was to buy an income for life - known as an annuity. Buying an annuity is the ultimate decision, as there will be no turning back once purchased. The pension offered will be based on the annuity rate at the time and further access to the pension fund will not be allowed. In our experience, specialist annuity providers can offer far better rates than any existing provider.
 
Some companies have guaranteed annuity rates (GARs) attached to their retirement annuity contracts and as we all know, rates have fallen dramatically over time, leaving you with a rate which will undoubtedly beat existing present day annuity rates. We check all pension plans to see if GARs apply and if so we recommend and help complete any necessary paperwork on your behalf.
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Phased retirement plans

These plans offer the choice of buying an annuity with part of the fund and leaving the balance to grow until such time as needed. This type of plan would suit someone who has decided to slow down rather than fully retire, does not need to maximise his PCLS and is prepared to leave the fund invested with the objective that it will grow to provide a higher annuity at a later date.
(Annuity rates may not be higher in the future)
Long-term care plans

Drawdown

This allows you access to your PCLS and at the same time, you can (but you don't have to) draw an income whilst leaving the fund invested for the future.
 
There are two types of drawdown: 
        • Capped drawdown: There are limits on the income you can take
        • Flexible drawdown: There are no limits, provided you can show you have other income of a certain level called the Minimum Income Requirement. As a result of the 2014 budget, the restrictions limiting how much you can take will be removed.

Drawdown plans are more complicated contracts which have many advantages over other schemes but should only be considered once your circumstances, risk philosophy and pension income requirements have been established.
Protection plans
Michael Williams Financial Services Ltd icon
For retirement planning services in Evesham, contact us at
Michael Williams Financial Services Ltd on
01386 422 461
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