Everyone’s circumstances approaching retirement are different. However, one thing remains constant regardless of your circumstances – that this is the most important financial decision you will have to make in your lifetime.
The most common and tax efficient method of saving for retirement is by investing in a pension, this will leave you with a lump sum at the end of your working life. In the months approaching retirement it is likely you will begin considering your options for obtaining an income from this lump sum. There are two methods - buying an Annuity or choosing Income Drawdown.
An annuity is the most common method of obtaining an income from pension funds, however alternatively, pension funds may remain invested and be drawn as income directly from the pension fund – this is referred to as Income Drawdown. This option is more risky than buying an Annuity, so given the importance of this decision a specialist should be consulted to advise you in selecting the most suitable method.
At Johnston Campbell Limited we have a specialist Pension team in place, who will take your individual circumstances into consideration and guide you through the complexity of the options available to you.
