Leedham can help you choose the most appropriate retirement solution

A key area of advice at Leedham relates to the choices clients have when taking pension benefits.

It is crucial that you seek advice when taking benefits as there are now a wide range of options available since the new Pension Freedoms were introduced in April 2015.

Everyone has different retirement income requirements and we take these into account when helping you to choose the option or combination of options most suitable for you.

Whilst it is tempting to select the option which gives the highest amount of ‘tax free cash’ and greatest level of fixed income, this may not provide the flexibility required going forward, the best rates in the open market or the best tax planning opportunities.

Flexible Retirement

Following changes to pension legislation in April 2015 there are more options available when taking retirement benefits. Several factors need to be considered before making a decision, for example:

  • Are you concerned about leaving benefits to your dependants?
  • Would you like to vary your pension income to suit your needs?
  • Would you like the option to keep your money invested and try and increase your fund value?
  • Do you plan to continue working?
  • Do you need all of your tax free cash now, or would you like to take it in stages?
  • Do you need access to your tax free cash now, and leave the income for later?
  • Do you want a guaranteed income for life?

Options under the new Pension Freedoms include annuity purchase, flexible access drawdown, phased retirement, or a combination.

At Leedhams, we specialise in advice in retirement income planning. We discuss the advantages and disadvantages of each option and recommend the solution which best suits you as an individual.

It is essential that you take advice before making your decision. Making the wrong decision at retirement can cause unexpected tax consequences and be a very costly and often irreversible mistake.

Leedham Independent Financial Advisers Limited is authorised and regulated by the Financial Conduct Authority.