Retirement planning is more than just a pension.
It is important to put some time into planning your pension. The choices you make will have an impact on the income you will get when you retire and the lifestyle you will be able to afford.
Companies who provide pensions employ fund managers to invest your contributions in one or more pension funds.
These funds are used to buy and sell assets, such as shares, property, bonds and cash. There are many types of pension fund and each is invested in a different mix of these types of assets.
You can allow the companies to manage your fund choices or you can control the options yourself.
For example, a typical pension fund might have:
The value of the fund rises and falls, depending on the performance of the shares, property and other assets in which it invests. The fund is expected to grow by a certain amount each year but this is not guaranteed and fund values can rise and fall over time. The value of your fund will be reduced by any fees and charges you have to pay.
Your pension fund is a long-term investment that you should ideally keep for 20 to 30 years or longer.
You have saved and built up a good pension over the years, don’t waste it now by taking the wrong option.
Depending on the type of pension you hold you can access your pension money in various ways:
OBN Financial Services can advise you the most tax efficient way to take your pension. We way up the pros and cons of each option and help you decide the most suitable approach for you based on your current circumstances.
Pensions are very technical and the choices differ depending on your circumstances so make sure you speak to a professional who will fully explain the pension process.