Following the recent pension freedom regulations announced by the government, there is a greater choice of how you manage your pension pot at retirement. You are now able to access your pension pot from the age of 55 and can draw out 25 per cent of the total amount tax-free, with the rest taxed at your current rate of income tax.
Additional retirement options could include purchasing an annuity, flexible drawdown on your pension, taking the whole amount as cash or even deferring your pension to allow for continued growth. Understanding how these different options impact your future income requires financial planning.