What You Need To Know About Retirement Income

What You Need To Know About Retirement Income
Underwater by Andy Deitsch. Why?

Your retirement income options are now so flexible, whether you’re years away from it, nearing it, or drawing it, read this short but invaluable guide on how to maximise your retirement income choices.

Pick Up Some Top Insights From This Helpful Guide In Three Sections:

What Are Retirement Income Needs?

What Are The Different Ways To Accumulate Savings For Retirement?

Retirement Income Options Post-Pension Freedoms

It’s Never Too Early Or Too Late To Think About Your Retirement Income

If you’re like most people, you’re probably aiming for a decent level of retirement income from your pensions, so you’ll have enough money to enjoy life’s longest holiday when you stop work.

The good news is that following pension freedoms in 2015, there are now a number of flexible options open to you.  These include the choice of cash payments, guaranteed income, flexible income and fixed term guaranteed income.

By combining these options in virtually any proportion, the choice is bewildering.  It means you can pretty much cover your needs at every stage of your retirement.

That is, if you’ve accumulated enough savings during your lifetime.

An excellent guide from FTAdviser sets out the typical retirement income issues you need to consider. 

It’s produced in association with Scottish Widows, with contributions from some key pension providers.

It looks at the various ways in which you can build up your savings to draw on in retirement. 

And it covers the options now available when you come to draw cash and income from your pension.

To whet your appetite, here are some opening words from three of the sections in The Guide To Retirement Income And Planning.

What Are Retirement Income Needs?

Gone are the days when most individuals retire with handsome defined benefit pension pots knowing exactly how much they can spend in every phase of retirement.

Retirement needs today are more complicated and vary through different stages of the retiree’s later life.

Billy Burrows, founder of William Burrows Annuities, says: “Since pension freedoms [were introduced in 2015] many people have confused cash with income, which has resulted in many people moving away from regular income streams – such as defined benefit pensions or annuities – to a more ad hoc approach by taking a combination of cash and income withdrawals.”

But why does the amount of money that pensioners need vary at different times?

Read the guide on retirement income...

What Are The Different Ways To Accumulate Savings For Retirement?

How many people can actually afford the same luxuries they enjoyed pre-retirement once they retire?

Many people have expectations about how their lifestyle in retirement will look but some people may underestimate just how much they need to have saved for retirement in order to live how they wish.

The good news is that there are numerous ways people can save up for retirement to make it more likely they are able to match their standard of living.

Experts say pensions are still the best way to accumulate savings because of pensions tax relief.

Read the guide on retirement income...

Retirement Income Options Post-Pension Freedoms

George Osborne’s plan to cut savers some slack in their retirement income options has endured a fair amount of derision in the past three years.

The former chancellor’s pension freedoms, introduced in April 2015, were chided for causing confusion among consumers, discouraging prudence among retirees and inadvertently leading pensioners to outlive their savings.

Critics will continue, no doubt, but the picture of options now open to individuals and how they’re using this flexibility, is a little more nuanced.

More than one million people aged over 55 have accessed defined contribution schemes since the changes, and a substantial amount of those have deployed the cash in ways that suggest they’ve not been trigger-happy spending.  Moreover, many are using the sums to spur their income.

Read the guide on retirement income...

Please Share This

If you’ve found this page of interest, please would you kindly send a link to it to your friends and colleagues using the buttons below.  You’ll be helping us out, and they might like it too.  Thanks, it's much appreciated.


AJ Bell Is Often The Best Value SIPP For Stockmarket Assets

That's our opinion.  Not just because AJ Bell was the first company to offer an online SIPP.  Nor that it's received many prestigious awards.  And not even because the wife of SIPPclub's Founder has an AJ Bell SIPP.  It's because it's one of the most competitive stockmarket SIPPs on the market. 

Over time, charges can wipe out a huge part of your fund.  We like AJ Bell because there are no set-up costs.  If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund.  And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment).  However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.

Visit AJ Bell

Get Valuable SIPP And SSAS Insights Emailed Directly To Your Inbox Every Monday

  • Please use an email address you can access. You can unsubscribe at any time.

As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk.  Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.

Please read our full Terms which includes criteria for SIPPclub membership.