Did you know that 'saving for retirement' and 'income in retirement' are not the same thing? Affinity offer people all over Glasgow and Lanarkshire a range of options that make the most of your pension fund.

You do not have to accept the arrangement your current pension company offers you. Affinity can usually get you a substantially better pension deal by moving your pension fund to an alternative provider. 

Saving for Retirement
You build up a pension fund, normally with a Personal Pension Plan or through your Employers Scheme.

At Retirement
From age 55 onwards you can normally take a Tax Free Lump Sum of up to 25% of your pension fund. You then make a choice on how best to utilise the remaining fund. Typically this would have been to Purchase an Annuity, where you use your remaining fund to buy a guaranteed income for the rest of your life.  The alternative was to remain invested in a Drawdown plan where your fund remains invested with your income coming from the potential growth on that fund.

Since the budget of April 2014, your options have changed significantly. While you can still purchase an Annuity or remain invested in a Drawdown plan, you now have the opportunity of taking all of your fund as cash* (after paying the relevant tax) and investing in an alternative arrangement that you may feel is more suited to you.

Whatever option you decide to take, it is essential that you take financial advice as this fund has to provide an income for the remainder of your and/or your partner’s life.

Although these changes were proposed in the 2014 budget, they still have to be ratified by parliament and do not come into effect until 2015