Fixed Term Annuity

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Income Drawndown Pensions 2011 Changes

Although we're nearing the end of the year we feel it's important to let people know of the income drawdown pensions changes which occurred in 2011. From the 6th April 2011 the Government put into place a number of changes to income drawdown pension plans which will affect all of those which are over 55 and in need of a plan.

The major change made is that income drawdown pension plan holders will no longer be required to purchase an annuity, or enter into Alternatively Secured Pension at age 75. You will however be permitted to continue in Income Drawdown for life. As a result of this the Alternatively Secured Pension scheme has been abolished completely. From age 75 the maximum income calculation will be reviewed every year.

Another change that's been made to income drawdown pension plans is that the maximum income an individual is able to draw out in a year has been lowered to roughly around the equivalent of the income that would be available from a single life annuity bought with the same fund. The top amount of income entitlement gets calculated at the beginning of the income drawdown pension plan using the planholder's age and Government Actuary's Department rates. The maximum income calculation will be reviewed every 3 years, rather than the 5 years before April 2011.

Another change to income drawdown pension plans is that there's a new type of Drawdown Arrangement - ideal for investors who would like to do away with the cap in their income. This change allows for the freedom to withdraw any amount whenever needed. To be able to do this you require a minimum of £20,000 per year available in secured pension income. This is called 'Flexible Drawdown'.

As you can see all types of drawdown have both risks and benefits. Pensions are an extremely complex area of financial planning, therefore we recommend consulting a professional independant financial advisor who can provide advice through the process. To find out more about Income Drawdown Pensions or to get in touch with an advisor visit - http://atretirementadvice.com

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Retirement Advice

Retirement is a huge step in everyone's life, which is why it's so important to get quality retirement advice if needed. Many people approach it differently - some may feel a sense of loss not being able to mix in with their work colleagues, others look forward to it. What's certain is that retirement is a fantastic opportunity and exciting new phase in your life. You can look forward to:

Being free from the stress and pressures of work.

Having the time to do all the things we want to do.

Having the time to read all the books you never got around to.

Having the time to enjoy leisure and sporting activities during the week.

Being able to take holidays on the spur of the moment, and more often.

Many people worry if they'll be able to afford the quality of life they've dreamt of. Will the worry and stress of work be replaced with the worry and stress of not having enough money? With retirement advice you won't need to worry any more. If you're taking early retirement, about to retire or have already, then the earlier you take action the better. Ask yourself these questions:

Have I made enough provision for my retirement?

Will I have enough money to enjoy the lifestyle I want?

Have I worked out how much money I will need to live on in retirement?

Have I arranged my investments to receive the income I require?

Will my pension be enough for however long I live?

Is my pension safe and secure?

What kind of effect will inflation have on my pension and other income?

Will government changes in taxation affect my pension?

Will I be able to afford long term nursing care if I need it?

Have I minimised my tax liabilities, including Inheritance Tax?

For a free consultation and professional retirement advice visit - http://atretirementadvice.com

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Income Drawdown Pensions

Over the age of 55? Looking to retire? If you answered yes then you have the option to use an income drawdown plan to offer benefits for retirement. This is effectively a continuation of the investment of your pension funds after the withdrawal of your pension commencement lump sum.

Most pension funds let you withdraw a max of 25% to be taken as a PCLS (pension commencement lump sum) at retirement, however this may different depending on the specific terms in your current contract. This can of course be used for anything from reducing debt, to eliminating it all together or as an investment.

It's worth noting however that income drawdown is not suitable for everyone, therefore it's always worth considering various other means of raising capital. Income drawdown involves investment risk and an extra cost compared to buying an annuity straight away. If you have a small pension fund or no other assets to fall back on income drawdown is not usually suitable.

Notes of interest:

taking withdrawals may reduce the value of your remaining fund - particularly if a high level of income is taken and investment returns are poor.

as stated previously, there is always a risk that the income drawdown returns could be lower, and therefore provide a lower income than if a standard annuity had been bought initially.

if a lump sum is taken, this will reduce the amount of funds left to provide an income in retirement.

For more info about income drawdown pensions, or to speak to someone for retirement advice visit - http://atretirementadvice.com

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Lifetime Income Annuity

A research study by the Financial Services Authority found that by shopping around you could improve your lifetime income annuity plan by up to 35%! Sadly, when choosing a lifetime income annuity plan it's common for most people to stick with the same company which they use for their pension funds. As a result of this thousands of people are missing out on getting the best deal for what could potentially be one of their most important financial decisions they'll ever make.

There are many things to consider when choosing your lifetime income annuity plan such as how inflation could affect your income in the future. It's also important to weigh up all of your options and pick the right deal which suits you. All of this can be a daunting task for some, which is why AT Retirement Advice take all of these factors into consideration, and guarantee to get you the best deal.

Do you regularly smoke? Have you ever been hospitalised for a medical condition? Do you have to take medication regularly? If your answer is yes to any of these then it's possible that you could qualify for a higher income from your lifetime income annuity plan.

When deciding on a lifetime income annuity plan there are a couple of extra options which you can add to your plan - all of which will cost extra, in the form of less income at the outset from your annuity.

Joint Annuity - You can protect a civil partner, spouse or someone who is financially dependent on you.

Guaranteed Period -  This ensures that your annuity will pay out for a set period of time (5 or 10 years).

AT Retirement Advice are here to offer personalised, useful advice so that you can be sure you'll get the best deal. To find out more about lifetime income annuity plans, or to get in touch with a member of AT Retirement Advice, visit - http://atretirementadvice.com

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Fixed Term Annuity

Fixed Term Annuities are an investment which for a set number of years guarantee income payments. At the end of the chosen term they offer a guaranteed maturity  amount, without having to worry about any investment performance risks or annual investment charges.

Fixed Term Annuity features:

A guaranteed maturity amount at the end of the plan term.

Guaranteed income up until the age of 75, dependant on legislative limits.

Trustees and Managers of trust-based pension schemes can pick from various plan options.

At the outset - choice of income level, from nil (£) up to the max allowed under current legislation

Plan options for Trustees and Managers of trust-based pension schemes

Range of flexible death benefits to choose from

There are a variety of options to consider when figuring out your retirement path. If you'd like to discuss your options with a professional, get in touch with AT Retirement Advice by giving us a call on 01482 217234 or visit http://atretirementadvice.com