With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.

Julie Carter

I’m Close to Retirement, How Can I Draw Personal Pension Benefits?

September 1, 2016

There has been much news in the press regarding the drawing of personal pensions in light of new rules that the 2016/17 tax year brought but getting the facts about how to complete the process and reap the rewards of your hard work isn’t getting any easier as a result. That’s why we’ve dedicated the following post to this very subject so you can get the facts about personal pensions from our Buxton based financial advisors.

A word about money purchase schemes

Whilst personal pensions fall under their own category they are actually money purchase schemes with the value of the benefits ultimately dictated by the level of your contributions. Other factors, such as the length of time that you have been making contributions to your pension fund, the charges applicable to your particular pension product and the investment growth over this same period also effect how much money is in your pension fund when it comes to retirement.

How does current legislation affect drawdown procedures?

The latest rules regarding the drawing of pension benefits mean that you can start benefiting from the funds accumulated from the age of 55. Better yet you don’t even have to stop working to draw pension benefits and 25% or less of the balance can be drawn as a tax-free cash lump sum. If you are suffering from ill health, you may be able to draw your retirement benefits earlier than planned, but this does depend on your chosen pension’s policy.
Defined contribution schemes could also see you draw from the remaining 75% of your pension year on year. Chat to our Buxton based personal pension team today for further advice.

*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*