Following the Pension Reform in April 2015, thousands of pension holders have opted to withdraw a combined total of several billion pounds worth of pension funds, thanks to the new flexibilities for over 55 year olds.
Have you, or would you opt to draw your pension early? If so, are you spending your money wisely?
Pension freedoms are being utilised
The Association of British Insurers (ABI) reports that in April and May this year alone, almost £2 billion was withdrawn from pension pots, and reinvested in a number of ways.
Over £1 billion of funds were withdrawn via cash withdrawals and another 800 million using income drawdown policies.
Savers contributed £630 million to retirement annuities in the two month period, with 11,300 retirement annuities being purchased for that sum.
Similarly, 10,300 income drawdown policies were purchased for a total sum of £720 million, according to ABI.
What options are available for reinvestment?
Some pension holders choose to reinvest their pensions funds into other pension products that may get them a better return in years to come.
Others are choosing to invest in buy-to-let property to provide them with a rental income in later life.
Others are simply opting for savings until an opportunity arises.
Then there is freedom from debt, relieving interest payments and creating peace of mind.
There are many options.
If you have recently made a withdrawal are you spending your money wisely? Or if you are planning to take advantage of the pension freedoms when you reach age 55, do you have a plan of action that will give you enough funds to see you through retirement?
Dental & Medical Financial Services advise many doctors and dentists on their options regarding Flexible Pensions. We can discuss scenarios based on your specific circumstances and work out the best route for you and your family. Call today to get sound advice from specialist professionals.
Tel: 01403 780 770