Financial adviser in Cambridge - Mortgage broker in Huntingdon

There are a number of options available to you when you come to take your retirement benefits. The main purpose of most pensions is to provide a regular income for life on retirement, however, a proportion of the pension fund can usually be used to provide a tax-free lump sum (known as a pension commencement lump sum). You will normally be able to take up to a quarter of the value of your pension as a tax-free lump sum. Taking a tax-free lump sum will reduce the regular income you can get from your pension. There are a number of ways in which a pension can be used to provide a regular income, but the most common way is for the accumulated pension fund, less any tax-free lump sum taken, to be used to purchase an annuity from either the existing pension provider or another insurance company. An annuity will provide you with a regular income for the rest of your life. As the existing provider may not offer the best rates, it is advisable to 'shop around' to see if another company will offer a higher income. This is known as the open market option. There are a wide variety of different types of annuity available, including those that increase over time or which will continue to be paid to a husband, wife, civil partner or dependant on death of the annuitant (the person that purchased the annuity). It is not possible to cash in an annuity at any time. As an alternative to purchasing an annuity it is also possible to receive an income directly from some pension plans, your financial adviser will be able to provide information about this option. Depending on the type of pension, it is normally possible to take pension benefits from age 50, although this is due to increase to age 55 from 6 April 2010. ******************************************************************** The value of your investments and any income from them can fall as well as rise and investors may not get back the amount invested. Past performance is not a guide to future returns.

Name & Registered Office: AIA (CAMBRIDGE) LTD 31 HIGHFIELD AVENUE CAMBRIDGE CB4 2AJ Company No. 05645586 Registered in England ~ Mortgage Broker Cambridge ~ Independent Financial Advice Huntingdon ~ Financial Adviser Peterborough ~ ~ Pensions Cambridge ~ Investments Huntingdon ~ Life Assurance Peterborough ~ Mortgage Advice ~ ISA Associated independent advisors, is a trading style of The Clarkson Hill Group Plc, Registered Office: Alexandra House, Alexandra Road, Wisbech, Cambridgeshire, PE13 1HQ. Tel: 01945 585721 Fax: 01945 464712 Registered in England number 4310108

Retirement Options

`Retirement Options`