Due to new legislation that was implemented in April 2015, when you get to 55, you can take the whole of your pension pot as cash in a lump sum. However, there are disadvantages in doing so, namely you may be faced with a large tax bill and have insufficient funds to get you through your retirement.
By contrast, a flexi access pension is designed to provide you with a flexible but long-term income during your retirement.
A flexi-access pension, commonly known as a flexi-access drawdown, is a flexible type of pension fund. The flexi-access pension replaced the capped flexible drawdown options for people setting up a new drawdown plan on or after April 6, 2015.
If you are looking for a flexi access pension, which provides a tax-free lump sum, then the flexi access drawdown pension might be right for you. With this flexi access pension, you can enjoy a tax-free lump sum of up to 25% of the crystallised fund, every time crystallisation takes place.
With a flexi access pension, you can move your pension pot gradually into an income drawdown.
Knowing what the best way is to fund your retirement can be a difficult decision to make. Here at Rockwood Financial Solutions, we work with you to identify the best financial strategy for your retirement.
Our team of pension and retirement experts will go through the different pension options with you, including flexi access pensions. We will consider all the factors that influence pension pots, including your age, circumstances, income and commitments.
A flexi access pension can be an effective, safe and long-term solution to help provide you and your family with a sufficient income during the period of your life that you are no longer working.
Contact Rockwood Financial Solutions today to get the ball rolling as whether a flexi access pension would be the best pension pot option for your retirement and to let us find you the best flexi pension providers for your individual situation.
Nothing in this blog constitutes financial advice or recommendations, for more information please contact Rockwood Financial Solutions on 0330 332 2679.
Don’t wait until it is too late. Speak to our friendly team and start planning for yours and your family’s financial future now. Contact Rockwood today to find out more.
At Rockwood we’re passionate about pensions and can help you understand what your options are. Whether you have one or several pensions we can review them for you and explain the advantages and disadvantages of consolidation. If you do decide to switch or consolidate we can help you chose the pension scheme that is right for you. This will be based on your circumstances now and the lifestyle you want to achieve in the future. All of our advice is completely impartial. If you’d like advice on existing pensions or setting up a new pension then we’d love to help. Contact us today to start making the most out of your pensions now.