How to get the best income from your pension when you retire...

How to get the best income from your pension when you retire...

...is one of the most important decisions you will make in your life. Other than buying a house it could be the biggest financial commitment you ever make. So take time making your decision. You shouldn't just accept what your current pension provider offers.

You have a legal right to "shop around" using your Open Market Option, and by doing so could increase your income by thousands of pounds over your lifetime.

It is also essential you don't just consider your annuity options either. There is no point in looking only for the most competitive annuity rate, we will do that anyway, what you really need to know about are all your retirement income options.

Whichever one you choose, it is all about what risks you find acceptable in return for the benefits you want.

 
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Annuity

This is where you give up control of your pension fund in exchange for a guaranteed income for life.

It is traditionally the most common choice and considered to be low risk; however, there are some significant risks that need to be considered...

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Pension Fund Withdrawal

Also known as Unsecured Pension or Income Drawdown. This is where you keep control of your pension fund and simply "withdraw" an income directly from it.

You have significantly greater flexibility and control but with increased risk too...

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Guaranteed Income Plan

Also known as Fixed Term Annuity or Protected Retirement Plan. This sits somewhere in-between the other two.

You keep control, with your pension fund remaining invested; however, you also have a guaranteed income AND a guaranteed fund at maturity...

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