Prime Time Financial

The decision on how to take retirement income is a big one. Here are the major options you are likely to have. 

A traditional Lifetime Annuity has the advantage of certainty - an income for the rest of your life. But the flip side of that coin is inflexibility - if circumstances change, for example, an annuity won't.

Another option is "Drawdown". This was previously called "Unsecured Pension" and "Alternatively Secured Pension", but is now available as "Capped and Flexible Drawdown". With this option, all or part of your pension plan remains invested, enabling you to make adjustments according to investment performance and your income needs. The requirement to secure an income after the age of 75 has been removed, so this option can continue for life if appropriate.

There is also middle ground between annuities and drawdown plans. "Third way" products provide various sorts of guarantee, but with some level of investment access to your funds.

Equity Release plans are also a way of enhancing income in retirement, either on a "drawdown" (when needed) basis, or more regularly.

Finally, taking an income from investments is a common way to receive an income in retirement. See the Savings & Investments section.

See How we can Help - Retirement Planning or Contact Us for more information.

Last reviewed 14th June 2011