Retirement Income

Turning Your Pension Into Retirement Income

As you approach retirement, one of the most important decisions you’ll face is how to generate a reliable income from your pension. There are different ways to take income, each with benefits, risks, and long-term implications. Retirement income decisions can be long-term and in some cases irreversible.

Understanding Your Retirement Income Options

When planning how to take income from your pension, there are several options available. Each approach has different features, benefits, and risks, and the right solution will depend on your personal circumstances, goals, and attitude to risk.

Annuities

An annuity provides a guaranteed income for life or for a fixed period in exchange for your pension fund. This income can offer certainty and peace of mind, particularly for those who value stability and predictability in retirement.

Annuities can be structured in different ways, including options to provide income for a spouse or partner, protect against inflation, or take health and lifestyle factors into account. However, annuities are not suitable for everyone and are often irreversible, which is why regulated advice is important.

Drawdown

Pension drawdown allows you to keep your pension invested while taking an income from it over time. This approach can offer greater flexibility and control, but income levels are not guaranteed and can be affected by market performance.

Drawdown may suit individuals who are comfortable with investment risk and want flexibility over how and when income is taken. It also requires ongoing review to ensure the strategy remains sustainable.

Blended Approaches

Some people choose a combination of retirement income options. For example, part of a pension may be used to purchase an annuity to provide a secure base level of income, while the remaining funds stay invested to offer flexibility or growth potential.

A blended approach can help balance security and flexibility, but it requires careful planning to ensure it aligns with long-term retirement needs.

Choosing the Right Option

There is no one-size-fits-all solution when it comes to retirement income. Decisions should be made with a full understanding of the implications, risks, and long-term impact on your financial security.

We provide regulated advice to help you assess your options and decide on the most appropriate retirement income strategy for your circumstances.

Annuity Advice Tailored to You

Choosing an annuity is a significant financial decision and, in many cases, cannot be reversed. We provide regulated annuity advice to help you understand whether a guaranteed income solution is appropriate for your circumstances.

Our advisers will consider a range of factors, including:

The value of your pension fund

Your retirement income needs

Health and lifestyle considerations

Whether income is required for a spouse or partner

Your preference for certainty versus flexibility

We ensure any recommendation is based on your personal situation and long-term objectives, not short-term outcomes.

Why Regulated Advice Matters at Retirement

Decisions made at retirement can have a lasting impact on your financial security. Taking income in the wrong way, or at the wrong time, can reduce flexibility or limit future options.

Regulated advice helps ensure:

You understand the advantages and risks of each option
Your retirement income is sustainable over the long term
Your wider financial position is taken into account
Decisions are made with clarity and confidence

We take the time to explain your options clearly, without jargon or pressure.