Before you take money out of your pension – read on
Many retiring today can look forward to several decades in retirement, so taking the right decisions about your pension pot is important, as you will want your money to last as long as you do.
Working out how much you will need to live on and getting a state pension forecast will show how much you need to take out of your pension pot to cover your living expenses.
We can help you work out the best way to take money from your pension pot. The Financial Conduct Authority recently reported that a third of consumers taking money from their pension were keeping it as cash, and so could be losing out in terms of the income they are likely to have to live on in retirement.
It’s also important to remember that when you take money out of your pension, only 25% is tax-free. If you take out more than that, it’s taxable and you might find yourself paying tax at a higher rate.
The information within this article is for information purposes only and does not constitute advice. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.