Pensions
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Retirement Options
Mr and Mrs F have a number of pension plans from various different employers. They would both like to retire, but are unsure if they are financially able.
Having worked for a number of different employers throughout their careers, including a time self employed, Mr. and Mrs. F have an array of different pension funds. Now that they are 57 and 55 respectively, they would like to retire and begin drawing an income.
They have calculated how much they would need to live on, and a recent meeting with their accountant suggested that annuities would be unlikely to provide sufficient income, given that they would like to provide spouses pension and inflation proofing.
The pensions are available for transfer to a Drawdown plan. This means that the tax-free lump sum can be taken (and some used for investing for income, with a small amount being spent on a cruise holiday!). The remaining fund would remain invested and provide an income. Because inflation proofing or widows benefits does not need to be purchased at outset, the amount of income that can be taken is higher than the annuity route (although this will involve some investment risk, which Mr.& Mrs. F are willing to accept).
If Mr. or Mrs. F were to die, the full value of the fund can be used by the surviving spouse to continue providing an income. The investments of the Drawdown are reviewed annually with Ovation to ensure the income levels can be maintained.