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HOW TO MAKE YOUR PENSION POT LAST LONGER


SIMON PHILLIPS Independent Financial Adviser How long do you expect to spend in retirement?


You can access your pension pot from 55 onwards. The average 55-year-old man in the UK could expect to live to 84, while the average 55-year-old woman might live to 87. Your own life expectancy will depend on your health and lifestyle but we are all living longer.


Your pension pot may need to provide you with an income for 40 years, you cannot run the risk of running out of money in retirement.


At Continuum we are looking at how it could do just that.


Take an annuity


You can use your pension pot to buy an annuity, this is an insurance product that gives you a guaranteed income for the rest of your life, no matter how long you live. The level of income depends on the annuity rate at the time you buy it. In March 2020 the best annuity rates were around 5.2% for someone retiring aged 65. So, a pension pot of £100,000 would buy you an annuity pension income of £5,200 a year.


That’s not a fortune, but it could form a part of your retirement income, on top of the state pension and any other arrangements you may have made.


Discover Drawdown


Pension freedoms came in April 2015 giving more choice over your pension savings and one of the choices is drawdown.


With drawdown, your pension pot is invested. You can draw out as much as you wish but the more money you


The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable retirement strategy, you should seek independent financial advice before embarking on any course of action. The value of investments can fall as well as rise and you may get back less than you invested. A pension is a long term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken. Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits. Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.


MORTGAGES LIFE INSURANCE SAVINGS INVESTMENTS FOR A FREE INITIAL CONSULTATION CONTACT


SIMON PHILLIPS Independent Financial Adviser: T: 07484 095 044 E: simon@mycontinuum.co.uk Based in Kingswear, providing coverage across the South West www.mycontinuum.co.uk


Continuum (Financial Services) LLP, Falcon House, Eagle Road, Langage, Plymouth, PL7 5JY T: +44 (0)345 643 0770 E: info@mycontinuum.co.uk www.mycontinuum.co.uk Continuum is a trading name of Continuum (Financial Services) LLP Falcon House, Eagle Road, Langage, Plymouth, PL7 5JY which is authorised and regulated by the Financial Conduct Authority


PENSIONS ESTATE PLANNING What should you do?


At Continuum we can provide the expertise you need to build a pension pot that is more than adequate for your needs and show you the best ways to use it to give yourself the lifestyle you want, for as long as you need.


At Continuum we can help you look at your pension planning as part of a full pension review and help you enjoy a long, and prosperous retirement.


take out the faster the pot will shrink, unless what you draw is balanced by the growth your fund enjoys.


There are no guarantees with drawdown – this means you need to work out an income level that will use up your savings at the right pace.


How much you can withdraw, and how long your pension fund will last, will depend on performance. Strong growth will help you, but the markets will have downs as well as ups.


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