Best Financial Advisors in Wishaw

If you are approaching retirement or simply want to access your pension pot you generally have three options: Option one, use your pot to provide a flexible retirement income – known as flexi-access drawdown. With flexi access drawdown you can normally take up to a quarter (or 25%) of your pension pot tax free then re-invest the remaining money into funds. You can choose whether or not to take a regular taxable income from the residual drawdown pot. You can set the level of income you want, however careful planning is needed to ensure the fund can last well into retirement. Your income isn’t guaranteed for life – so you need to manage your investments carefully or you could run out of money. Option two, use your pot to buy a guaranteed income for life – known as a lifetime annuity. As with flexi access drawdown, you can normally withdraw up to a quarter (or 25%) as a one-off tax-free lump sum. The remaining pension pot is then converted into a guaranteed taxable income for life. There are different types of annuities and features to choose from. For example you may wish to provide an income for a spouse after you die. Option three…take the whole pot as a lump sum - known as Uncrystallised fund pension lump sum. Again, the first quarter (or 25%) will normally be tax-free however the rest will be taxable.