The new pension legislation provides the freedom to access your pension savings from age 55.
However, first you have to have saved up some pension savings to have access to (!) and secondly you need to exercise responsibility and judgement as to how you apply these freedoms to your own personal situation.
If you are approaching age 55 and have pensions and are looking to work how to use them, here are six useful steps to take:
1. Check what the value of each of your pension pots is;
2. Gather information and speak to experts so that you understand your options. Ensure you understand the risks involved and establish your own attitude towards investment risks; (Note: there are some pension funds that come with guarantees.)
3. Work out how long the money needs to last. Even if it is not the most pleasant of subjects, it does mean you need to give some thought to your life expectancy;
4. Work out what your expenses will be in retirement;
5. Understand the tax implications of taking income or lump sums out of your pension;
6. Shop around for the best deals or take on a professional adviser who can do this for you.
The Government has established free sources of guidance to help you with the above. The help
can be on-line (www. pensionwise.gov.uk), face-to-face at a Citizens Advice Bureau, or over the phone, The Pensions Advisory Service. Once you have had “guidance” you may wish to have “advice” and that is where we would come in. We can provide impartial advice based on our extensive expertise and knowledge of the subject.
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