Independent Financial Planning

T: 0141 226 3184 | E: aw@fitzroywm.co.uk

Retirement Planning

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At Retirement Planning

The choices available to consumers are wide and varied and advice is essential at this key moment in a persons life.

Many of the options available once selected are irreversible such as the purchase of an annuity. Many people assume the only option is to purchase an annuity but on many occasions alternative solutions such as drawdown or flexible drawdown would be better.

Drawdown

Drawdown is where the purchase of an annuity is deferred and the funds allowed to continue to grow leaving the fund intact. Income is provided by withdrawing an income, monthly, quarterly, half yearly or annually. This income is flexible and can be varied  to  assist with tax planning and income requirements.

Flexi Access Drawdown

Flexi Access Drawdown is the modern flexible method of selecting a flexible income which can be altered to allow income tax planning and ensuring a chosen level of income is withdrawn to provide a suitable level of income in retirement.

We recommend withdrawing a level of income in line with the investment return to maintain the capital value.

The level of income should be reviewed regularly to allow for investment conditions, tax thresholds and a change in circumstances.

Annuities

One of the many of the alternatives include purchasing an annuity which in itself has many choices. This includes alternatives. such as whether to accept the annuity offered by the current pension provider or shopping around (open Market Option) to discover if another annuity provider would pay a higher income for the same fund. Furthermore, should you suffer from ill health better terms could be achieved using impaired annuities. the annuity should have a 50% spouse benefit or if better annuities.

Currently, annuity rates are at very low levels and are providing a poor income for the sacrifice of capital.

Investments
Pensions
ISAs
Inheritance Tax Planning
Equity Release
Protection

Ongoing Advice

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