Phased retirement, (also known as ‘staggered vesting’), OFFERS a FLEXIBLE APPROACH TO COMMENCING AND WITHDRAWING PENSION BENEFITS.
Phased Retirement plans achieve this flexibility by allowing periodic encashment of the pension fund.
Periodically (generally each year) the individual decides the level of pension income they require. The annual pension income is composed of a combination of tax free cash and an annuity or suitable drawdown arrangement. The balance of the fund remains invested and may benefit from any market growth in the underlying investments
There are many other potentially complex issues to consider when using a phased approach to your retirement. Independent Financial Advice from an appropriately qualified adviser is essential.
A PENSION IS A LONG TERM INVESTMENT THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES, AND TAX LEGISLATION
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