Retirement planning all starts with a conversation.
Planning far ahead can feel like an onerous task. One that’s unlikely to stay the same or materialise when the time comes. But that’s OK. Pensions are complex, we’re not denying it. And the future is unpredictable. But by starting the conversation about your financial hopes and fears, we can begin to build a clearer picture of what life looks like after retirement.
That’s why our first step is to get to know you and your current plans for the future. It’s OK if you haven’t crossed that bridge yet, that’s what we’re here for! And we’re brilliant listeners. In the meantime, here are some of the options you can start having a think about.
Just because you’ve reached ‘retirement age’, doesn’t mean you have to start taking money from your pension pot. Leaving it untouched could mean more money for when you need it.
Turn it into income
Just like a salary, you can rely on your pension to provide you with a regular income (otherwise known as an annuity). You can take 25% of your pot as tax-free cash and buy a taxable annuity with the remaining 75%
Go with the flow
From 55, you can take cash from your pension pot as and when you need it. Flexi-access drawdown allows you to withdraw what you need, while choosing how the rest of your retirement fund is invested.
Dip into your pot
You can take your 25% tax-free cash in smaller chunks to tide you over in retirement or to take as and when you need it – from a dip in the pot to a dip in the Med. Remember that each time you withdraw, 25% is tax free and the rest will be taxable.
Take what's yours
Personal circumstances, such as ill health, may make cashing-in a viable option. But taking a lump sum should come hand-in-hand with a well-considered plan for what you’ll do with the funds. We’ll help you put that plan in place so there’s no nasty surprises down the line.
Mix and match
More often than not, plans have no straight answer or one single solution. That’s why there’s the option to vary the ways you take your pension pot. This is usually suitable to pension-holders with a larger or multiple pots.
What will you need in retirement?
Well, some say you’ll need roughly 60% of your annual final salary to live a comfortable life in retirement. But, as we all know, everyone’s personal circumstances are different. And what you need in retirement will depend on your current situation and your aspirations for the future.
So, it stands to reason that our first step is to get to know you! We’ll chat about you and your current plans for retirement. It’s OK if you’re confused or haven’t thought about it yet. We don’t judge. Everyone here at Fathom is friendly and approachable (especially Bohdi). With a bit of clarity and guidance, you’ll soon be filled with confidence about the future.
Everything we discuss will be in the strictest confidence. And after consideration of the information you’ve given us, we’ll talk you through your pension and retirement options and make a recommendation for the best way forward.
We don’t charge for our initial retirement planning reviews. We only charge if you wish to act on our recommendation. And if you don’t, that’s fine too. Ultimately, we’re here to give you financial peace of mind.
To learn more check out our guides page for a free Planning For Retirement Guide.