From 6th April pension savers have more options than ever before to manage their pension savings before the age of 55. The new pension rules mean pension savers can take their whole fund, take periodical payments or simply access their pension funds when needed.
In recent years both life expectancy and retirement age have increased making it more important to plan when it comes to your pension. Managing your wealth or having a financial planner make changes to your investments and make the right decisions on your pension can help you benefit financially in the long term.
Here are a few things you should think about when it comes to maximising your pension opportunities and make your life as comfortable as possible:
Starting early with your pension and contributing the maximum that you can for the longest period is the most simple and effective way to see the greatest benefits. If you haven’t started yet, is now the time? If you are paying into your pension can you afford to pay more? – 30 years from now you will be so glad you made this change!
Understand your scheme and your situation.
Many pension schemes are riddled with charges and costs when it comes to making changes so make sure that you and a financial adviser study your scheme before making any changes. Work closely with your pension adviser so that they understand your situation.
Know all of your retirement options.
Look into your options for retirement – will you be dependent on your pension or do you have other savings and investments? If so your pension contributions could be put to better use through pension freedom.
Carefully consider pension freedoms / pension unlocking
Anyone over the age of 55 can take their pensions as a lump sum without paying tax on the first 25%. Alternatively there is the option or income drawdown, which is a way of using your pension pot to provide you with a regular retirement income by reinvesting it in funds.
If you would like to discover how much cash you can release or discuss options you are considering please get in touch. The benefit in starting with Oakwell Pension Release Service is that many financial advisers work on behalf of their own company and can only recommend products or services associated with company. We are wholly independent which means we’re not limited to a company (we work with pension providers across the UK) and we recognise that everyone we meet has their own differing situation and needs a tailored solution.
We work with you to get to know you and to understand your situation before searching the whole of the market for the product or pension release / pension unlocking service for you. Our service is built around a series of promises aimed to ensure you are getting the right advice on your pensions.