Retirement is one of the most significant milestones in your financial journey. As you get closer to this stage, it’s crucial to plan how to make the most of your retirement income to support your lifestyle in the years ahead.
For many, retirement marks the beginning of a new chapter — a “second life” filled with opportunities to pursue passions, travel, or spend more time with loved ones. You may have been planning your retirement dreams for years, with big ideas about what you’ll do once you’re free from the 9-to-5.
However, alongside these exciting plans, it’s also crucial to focus on your financial future. If you haven’t already, now is the time to consider how your income will sustain you through retirement, ensuring it lasts for the years to come. Careful planning can help ensure that your lifestyle aligns with your financial goals, giving you the freedom to enjoy this stage of life.
Aside from withdrawing all your pension savings in one go – or leaving them untouched to pass on to your heirs – there are four main options available:
- Purchase an income for a set period or for life, referred to as an “annuity”.
- Opt for an adjustable income, known as “flexi-access drawdown” (or simply “drawdown”).
- Withdraw lump sums from your pension pot, often called “uncrystallised funds pension lump sums” (UFPLS).
- Combine different options to suit your needs.
This helpful guide outlines the pros and cons of each option, along with other important factors you may want to consider when planning for your retirement.
Download your copy of ‘Your retirement choices: How to generate an income in later life’ to find out more now.
If you’d like to talk about your retirement plan, please contact us to arrange a meeting.
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