Using Your Pension
If you are over 55 you may wish to look at whether it would be sensible or indeed practicable to use some of your pension provision for the future, in order to help your financial situation now.
The rules have changed dramatically in recent years with much greater flexibility as to how and when you can access your pension funds.
You do not have to retire in order to take your benefits, nor do you have to take them all at once. In addition, it may be possible to take a tax free cash sum from your pension now and take the pension at a later date. This could be especially useful if you have outstanding debts where you are being charge high rates of interest.
The current rules also mean that you are able to control your income with certain plans. It may be that an income is taken for a period of time and then stopped if no longer needed, for example when you return to work. The main point being that you are in control and can use your pension funds as and when you most need them.
Naturally if you take money from your pension funds now, then there will be less in the future, but at least now you have a choice and can make a considered decision once you know the full facts.
Pensions can be very complicated with much to catch out the unwary. Great care needs to be taken with such an important asset, often second only in value to your home and it is therefore vital that if you are considering this option to give your finances a boost now that you fully understand the implications that it would have on your future retirement income and also any state benefits that you may be entitled to at the moment.
To find out more about Flexible Pensions, go to our Flexible Retirement section.
Our specially trained Pension Advisers will be able to explain all the various options that are open to you and based on your own circumstances and existing pension provision can make recommendations to make the right choices. To speak to an adviser, click on our ‘I would like an Adviser to contact me’ link.
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Ashwood Law LLP,
Ashwood Law House,
Newton Road, Heather,
Leicestershire LE67 2RD