Most pension plans provide individuals with the ability to claim their pension benefits between the ages of 50 and 75, although the minimum allowable retirement age increases to 55 from 6th April 2010. You generally have two main options open to you upon claiming your benefits, a pension only, or lump sum and reduced pension, and you have many choices as to how you can set up your pension.
Essentially you have the following main options when setting up your pension:-
- You may set up an Annuity with your current provider or any other which may offer a higher pension (this is known as an Open Market Option). There are various types of Annuity available to you, including Conventional Annuities, Enhanced Annuities and Investment Linked Annuities to consider.
- You may choose to set up an Income Withdrawal (also known as Income Drawdown), whereby you transfer your pension fund into a product which allows you to withdraw varying amounts from it to suit your income requirements.
To obtain some indicative figures assuming you set up an Annuity, please click here.
To obtain some indicative figures assuming you transfer to an Income Withdrawal plan, please click here.
There are many features, benefits and risks involved with these arrangements, and we strongly recommend you seek our advice if you are considering claiming your pension benefits to ensure you are fully aware of all aspects of the plans and you make the most suitable decision for your circumstances and future objectives. For more detailed information on the products, please click here.