person's situation is individual there is no such thing as
the retirement option. Rather, there are a number of
options available to most people reaching retirement age.
number of options will largely depend on the size of the
retirement pot available (generally speaking, the larger the
accumulated sum, the more options will be available) - but even
with relatively small retirement funds important choices still
have to be made.
following it is assumed that you have made some provisions for
your retirement either in the form of savings, investments,
personal pension plans, work-related pension arrangements. AVCs
reach retirement, or decide to cut down on working hours and
semi-retire you will most likely need to rearrange at least some
of your pension fund(s) in such a way that they start to provide
you with an ongoing income (in replacement of your previous
salary or business income).
pages you will find a brief description of some of the main
options which you will need to consider.
outlining some of the available options in brief may be
deceptive and give the impression that 'sorting out your
pension' is just a trivial matter of making a few simple choices.
You need to
be aware that the choices you make now, in many cases will
determine your situation for the next 10, 20, 30 or more years.
So, if the wrong choice is made now, there will be a very long time
in which to regret it!
It is a
long-held view by NFA that retaining flexibility and room for
manoeuvre as long as possible is very desirable - but that this
of course should never jeopardize the security of future
which can be easy to overlook in the retirement decision making
process are related to how a future income stream will interact
with current tax-legislation and how they interact with
means-tested state benefits.
little point in having saved up over a life-time and/or
contributed to pension arrangements if the extra income this
provides in retirement is passed directly on to the taxman or is
used to subsidize benefits which you would otherwise be entitled
taking a 'holistic' approach and analyzing your overall
situation can the optimal combination of approaches be
identified which will help to ensure a long and hopefully happy
retirement without too many financial worries.