Nicholls Stevens Financial Services

TAKING YOUR PENSION BENEFITS

We spend all our lives being urged to save for our retirement only to discover as we near retirement age that actually taking the benefits can be a complex and confusing affair.

“When should I take my benefits?”

This is usally the first question  asked.   Under current legislation you can take benefits between age 50 and 75, although if you have been a member of an occupational pension scheme penalties may be imposed if you try and take the benefits before the prescribed normal retirement date. This decision is different for each person and depends on other financial circumstances, state of health, marital status and family longevity.

Should you take the benefits with the existing Insurance Company or go elsewhere exercising the open market option?

Usually the answer is that we can improve on the rates offered by making a search of the market place but some old policies contain a “guaranteed annuity rate” which must be preserved at all cost.

The options available are numerous and you need professional advice to make the right decisions.

• Should you take the tax free cash?

• Do you want to insure that the pension is paid until the death of your partner?

• Do you want a pension which keeps pace with inflation?

Nicholls Steven Financial Services are able to help you make the right informed choices. We recommend starting to plan your pension benefits as early as possible so it is worth contacting us say 3 years before your retirement date but if you are retiring within the next 12 months it is important that you let us look at the options with you.