If you have planned well enough it should offer exciting new opportunities and financial comfort.
Retirement should be a positive experience without a care in the world, therefore planning for your retirement as early as possible is essential.
Retirement funding is one of the biggest financial decisions you will make in your lifetime. Although the responsibility is yours to ensure your pension lasts you as long as you need it to, it is extremely important to obtain professional financial advice at the outset.
The size of your pension pot and amount of income you receive when you retire depends on several factors:
Under the pension freedoms rule, once you reach the age of 55, you can now take your complete pension pot in one go, giving clients more choice and freedom than ever before. However, if you do this, you could end up with a large Income Tax bill and run out of money in retirement.
You can also choose to take up to 25% of your pension pot as a tax-free lump sum, leaving the remainder of your pot for you to take a taxable income at times to suit you. Many people are using it to take a regular income, once retired. It is essential to obtain professional advice before you make any major decisions about how to access your pension pot.
If you delay taking your pension until a later date, then your pot can continue to grow, tax-free, and potentially provide you with more income when you decide to access it.
The value of your pension pot can rise as well as fall. It is important to review your pot and where it is invested as you approach your retirement age, in order to make necessary arrangements to help protect your funds
