At retirement age many people can become overwhelmed and the pension companies themselves do not offer any advice options or a system whereby they can give you independent advice. This is an important time as the decision you make here will affect the rest of your life.
Most people are unaware that you can ‘shop around’ for the best rates available on the marketplace (like you might do with a savings account or mortgage) or that you can simply take the lump sum and leave the income part for a later time or that if you have health conditions you can take a potentially much higher amount from your pension then you would have if you are fit and healthy.
In addition to all of this we are seeing some welcome changes such as employer’s no longer forcing people to retire at 65 and the companies providing the pensions not forcing you to take your options before the age of 75.
The questions which are very relevant at this time are as follows:
- Do you need an income now or just a lump sum?
- Are you in poor health, smoke or have a high BMI?
- Do you have a partner and if so do they have their own pension provisions?
- Will this pension(s) form your only income on retirement?
A review at this time would be a very appropriate and valuable exercise to go through these questions and more ensuring you make the right choice.
