Approaching retirement
Time for a final check of your plans
As you approach retirement, there are still more decisions that need to be taken. It’s a time for a final review and making any final adjustments.
When you’re close to retirement you’ll probably have a clearer idea of how you’re going to spend your retirement years. In turn, this will give you a better idea about how much money you’ll need.
Probably the most important decision you still have to make is what to do with your accumulated pension fund.
You have a number of options about what to do with your maturing pension fund. You can:
- Use the whole fund to buy an annuity
- Take up to 25% of the fund as tax-free cash and use the remainder to buy a smaller annuity
- Buy an annuity in stages rather than all at once - handy if you carry on working part-time
- Transfer it all to an income drawdown plan that lets you take some income while your fund remains invested. This is usually only suitable if you have a large fund
If you go for the tax-free cash option, you have to do this before age 75.
You might have to pay income tax on your annuity or income drawdown payments – this depends on your total income. You don’t need to buy your annuity from your pension provider – you can shop around for the best deal.
Don’t forget about your non-pension savings and investments. You’ll want to make sure they’re still working as hard as possible for you, but be wary of higher risk investments when you’re close to retiring. Major falls in stock market values could have a devastating effect on your retirement pot.
Investments
NatWest lump sum investment accounts offer you the choice of fixed term and open ended plans. Fixed term plans can offer you growth and capital security. If you prefer an open ended plan, our Cautious Growth Fund limits your exposure to investment risk – essential as you near retirement.
Savings
NatWest savings accounts can provide a safe home for your short term retirement savings. There are usually some fixed returns available if you don’t need access to your money for a year or more.
Tax efficient investments and savings
Don’t forget to make maximum use of your ISA allowance if you can.
With so many important decisions to make, it’s best to have a professional working for you.
If you have a sizeable pension fund, you might be considering income drawdown or wondering how you can access the best annuity rates.
We can help you figure out the best deals for you. Even if your pension wasn’t arranged through NatWest, we can still give you the confidential and personal service you need.
Inheritance planning
It’s time to make sure you don’t leave your wealth to the taxman.
Get in touch
We’re here to help you cut through the complexities of retirement.
Contact us today for an appointment with one of our Financial Planning Managers.
Call us on
0800 051 1868*
*Minicom 0800 404 6161. Lines are open: Mon to Thurs 8am-8pm, Fri 8am-6pm,
Sat 9am-5pm (excl. public holidays).
Calls may be recorded
Glossary
Check out those tricky retirement terms in our glossary.