Pensions

It is likely that you will have built one or a number of pension funds over your working life and there are a number of options available to you. The one that is best for you depends mainly on these factors:

• Your current financial circumstances (excluding your pensions).
• The value of your pension funds and income from final salary pension schemes.
• Your general state of health and attitude towards risk.

If you like advice on this subject then please contact Andrew

Generally speaking if you have a pension fund of less than £100,000 an annuity may be an option to consider (Obviously these are not recommendations as you will need to take financial advice before making any decisions). An annuity is effectively an exchange of guarantees. You pay a lump sum to an insurance company, your pension funds (usually after a deduction of the tax free cash figure that you are allowed to draw), and in exchange they guarantee to give you a set income for the remainder of your life.

You have the option to build in “add-ons” which allow for your pension to be increasing in your retirement and/or to allow a pension to be payable to your spouse should you die before them. Obviously these add-ons come as a cost to the initial pension which is payable to you but for many people still are beneficial.

The amount of income that will be payable to you is also dependent on your health and also whether or not you are a smoker.

If you are of below average health, you could be entitled to a enhanced level of annuity, so this is a avenue you should explore.

Even if you have only mild illnesses such as a slightly raised blood pressure, cholesterol or have had maybe a heart attack in previous years you may still be entitled to an enhanced annuity.

The company will also take into account the effect of smoking on your health and therefore being a smoker may entitle you to a greater income in retirement as well.

The level of income that is paid is calculated individually based on your age and the factors above if you would like us to provide you with some advice in this respect then please contact Andrew.

This can be popular with people who:-

• Do not wish to lose all the entitlement to their pension fund just in case they died before they have got the full benefit of the fund.
• Those that are semi-retiring and have income from other sources.
• Those that are waiting for the state pension to become payable and need a top up to their income.
• Those that wish to retain control over their pension funds.
• Those that would like their spouses or future generations to inherit part of their pension fund should they not fully utilise it themselves. 

There are a wide number of such plans available in the market now and it is important to use the one that best meets your needs. Generally this will involve looking at how you wish to invest your money and how much money you wish to invest.
 
If you would like detailed advice about unsecured income contracts then please contact Andrew.

You have the option to build in “add-ons” which allow for your pension to be increasing in your retirement and/or to allow a pension to be payable to your spouse should you die before them. Obviously these add-ons come as a cost to the initial pension which is payable to you but for many people still are beneficial.

The amount of income that will be payable to you is also dependent on your health and also whether or not you are a smoker. 

For more information please contact Andrew.