Partners Approaching Retirement

When approaching retirement, the biggest concern you will have is ensuring you have enough saved to maintain your lifestyle.

We can help you make the right decisions.

It may also be necessary to move your pension fund to lower risk investments in preparation for retirement.

Furthermore, you may be unsure whether you would like to take a tax-free lump sum and, if so, how you will use if effectively.

You may use your pension fund to purchase an annuity from a suitable annuity provider. This can provide you with a secure income for life - no matter how long you live.

Alternatively, Flexi-access Drawdown allows you to take an income directly from your retirement fund rather than buying an annuity. If you’re thinking about this option, you will need to take specialist advice. *

Defined Contribution (DC) Pensions

The Pension Freedom Reforms, implemented in April 2015, changed retirement planning significantly.

Individuals now have full access to Defined Contribution (DC) pensions from the age of 55, with unrestricted income available, subject to paying their marginal rate of Income Tax on any taxable withdrawals.

It may still be possible to take up to 25% of the pension fund as tax-free cash.

DC pensions can now be passed to anyone after death, not just a dependant.

Income taken from a DC pension by beneficiaries will be tax-free, if death occurs before the age of 75 and at the beneficiary’s marginal rate, if death is later than this.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

*Income drawdown’ will reduce the size of your pension fund and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small - this is more likely the higher the level of income you take.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Got a question?

If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer for partners, please get in touch.