What is better than guaranteed income for life?
Does your pension plan provide you with an inflation proofed, guaranteed income for life? What about in death?
Most defined benefit schemes will provide for a spouses pension but what then? Typically that will be the end of the line.
Have you ever considered the interaction of age on spending patterns in retirement? What if you could micro-manage your own retirement to meet your own expenditure? What if the pension funds you don’t spend could be inherited by your family, potentially free of tax?
From April 2015 they can be. New pension freedom and choice at retirement means that different questions need to be asked at retirement – it’s not just a case of how much income you need but how much your family could inherit.
If you have defined pension benefits, or are entitled to income from a final salary pension arrangement you may wish to speak with Provisio to discuss whether the guaranteed route is still the right option for you.
Are you still not sure? It may also be possible to strike a compromise. Some scheme trustees will allow a partial transfer, allowing you to secure a stream of guaranteed pension income whilst knowing that your family will inherit what you don’t use.
This opportunity is particularly relevant if you are single or concerned about your long term health.
If you would like to speak with a pension specialist to discuss what this could mean for you, please contact Provisio on 01462 687337.