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Services in Croydon

If you're getting ready to retire from work there are a few things that you need to put into place to ensure that you can enjoy a stress free retirement.

Retiring is a huge lifestyle change; you'll have all the time that you used to spend working as free time, your income levels will become adjusted, you'll no longer follow the same routine that you could have been following for years. Before you commit to this huge change you want to ensure that you are secure both financially and in life.

The main concern for many people when thinking of retiring is the financial aspect. Some people will have a very limited retirement fund meaning that there is risk of getting into financial difficulty if any unexpected costs emerge. Large, unexpected financial costs will often come from peoples greatest assets such as property or vehicles.

Before you retire why not work with a surveyor to ensure that your property is healthy and there will be little chance of any unexpected costs to come of it. If you are interested in getting hour house surveyed then click here.

What's new? Phased Retirement for anyone (2016)

Phased retirement was introduced to add flexibility to drawing benefits from a personal pension. Basically, it divides your pension fund into one thousand little policies allowing you to draw the combination of tax-free cash and annuity income from each one separately. The concept is to encash (vest) the exact number of plans each year to meet a target income.

As most of the cash released comes from the tax-free cash element of the policy initially there is very little tax liability in the early years. Over the years the annuity element will rise and eventually this will provide the majority of the income.

The main advantages of the system is that it allows you to adjust your income levels at will in the early years and to leave most of the fund invested whilst drawing an income. Annuity purchase is thus delayed and spread over a number of years rather than taking place all at once. The concept is very flexible but the main disadvantage is that most of the tax-free cash is used to provide income and cannot be drawn as a lump sum.

These days phased plans are often combined with income drawdown to give the greatest possible flexibility but the administration of these plans can be complex. At age 75 any remaining funds that have not been vested must then buy their annuity (or tax-free cash.). Phased Retirement -


Croydon and SW London Lifestyle

Pensions & retirement in Great Britain

Retirement Income Options

Looking for Croydon, Merton & Sutton Credit Union? then click here