How Much Money Can I Get Out of My Pension?
THAT is the question!
And, like most questions in the world of Pensions – there is never a simple answer.
Which in turn leads to more questions.
So. Where on earth do I stand?
Let’s see about getting you some answers. After all, it is your pension pot and you should know how much it’s worth and when you can get access to your money. But brace yourself, for there are choices to be made…
Choices, choices… but ultimately the choice is YOURS!
As you can imagine there are many different types of pensions, from personal pensions to company-run schemes, final salary, money purchase, self-invested pensions – and the list goes on. But in no way should that put you off.
Your pension pot is designed to give you an income which you can take from as early as 55 years of age – and you don’t even have to be retired!
So now the question is, how do you want it? And when do you want it?
You can decide to take it much later, if you decide that you don’t yet need the income.
Some people elect to reduce their hours or go part-time as they approach retirement and you can start to draw your pension to supplement your income should you fancy.
Other people may wish to stretch their pension out for as long as possible by living carefully even in retirement. They may visit sites like https://www.raise.com/coupons/sams-club to get coupons to pay for their food, which can be a good way to use less of the precious money they have worked years for to save. Having plenty of money leftover can be beneficial in the long run, especially if you suddenly need extra care in your later years.
There is always choice.
In addition to the income, you can also take a lump sum of money which is tax free and will usually total up to 25% of your total pension pot, which is why it’s important to know how much your fund is worth. This can be seen as a reward for saving over the years to build your retirement income and the tax-free lump sum can be used for anything you want.
Think about it. Anything you want. You deserve it.
You deserve some TLC.
That’s right. There are 3 ‘T’s which can really boost your pension – and you.
Time. Tax Relief. Tender Loving Care.
Although your pension contributions may have been modest, if they have been invested over a long period of time, then with the help of an established tax relief firm that they could have attracted, you may find that your pot is healthier than you first might have imagined.
Starting your pension as early as possible will make a big difference to the amount available as the longer it is invested, the longer the fund has to grow. You may find this article here helpful if you are wanting to know of some ways to enable you to add to your pension more.
Feel the relief…
Tax relief will also have a great effect on the value of your contributions. This is a big boost to every contribution you make and not something to ignore. As a basic rate tax payer you will get 20 tax relief for every 80 you invest. However, for some, they may not be able to achieve this as they have previously had an issue with their taxes, luckily they do have a chance to rectify this by checking out websites such as TaxRise to start afresh with their taxes, so they are able to help with their future pension plan.
Finally, the tender loving care is the help to take your pension from good to great. Working with an Independent Financial Adviser will make sure that your pension is invested in funds which perform for you.
We’ll also keep a beady expert eye on the charges being applied to the pension product and help you get the best from your pension pot when you finally wish to take the benefits.
It’s up to you. But you’re not alone.
So, there we are. How much you get can sometimes be up to you. Keeping an eye on your pension and making small changes can make a big difference when you finally want to take the income and the tax-free cash. Also, knowing how much you can expect from your pension can help you to plan better for the future.
Knowing your pension. Gaining better returns. Enjoying a brighter future.
Those are the answers you want. So, any questions?
For expert, professional and above all FRIENDLY advice regarding pensions call The London Investor on 01272 225114 or click here to contact us.
No pressure. No obligation. Just your best interests at heart.