Do you know your options in terms of how you can take your retirement savings?
These are the results from the Poll:
- Yes: 13.6% of 250 votes
- No: 51.2% of 250 votes
- Tell me more: 35.6% of 250 votes
Since April 2015 you have more choice as to how to can access your savings. Now you can:
1. Take all of the money as cash – either as a lump sum payment or several payments, or
2. Keep it invested and take the money out as and when you need it, or
3. Use some or all of your savings to buy a pension.
In making your decision, it is important that you understand the different costs and tax implications of each option. You can find a brief overview in our May News Update, but for more detailed guidance:
• The Government has set up a free guidance service called Pension Wise. If you are aged 50 or over, you can call them to discuss your options over the phone or arrange a face-to-face meeting. www.pensionwise.gov.uk
• You could also speak to an independent financial adviser who will be able to offer you individual guidance, although they will probably charge you for their time. You can find a local adviser at: www.unbiased.co.uk
• Legal & General has also produced a guide called ‘Freedom and Choice’, which you might find useful in understanding your options. You can download it here.
Legal & General’s Retirement Planner tool will give you an idea of how much your account might be worth and what you might be able to do with that money, using the options above.