In the movie Braveheart, Mel Gibson’s character (who has a blue painted face) is on the battlefield, about to face the English and he cries to his troops to inspire them, that they are fighting for their freedom!!!
Since April 2015 we now have freedom and control of how and when we draw our pension benefits. From age 55 (rising to 57 in 2028) people can now decide how and when they can draw their pension benefits: two new extreme options are that you could spend you entire pension fund in one go or don’t spend any of it and pass the fund down to future generations (outside your estate for Inheritance Tax purposes).
Peter “Spiderman” Parker’s Uncle in the movies says “with great power comes great responsibility” – whether we like it or not, we are now masters of our pension universe and need to make sure that we make the right choices (for ourselves and loved ones – both when we draw our benefits and beyond).
Whether you prefer to do it yourself or seek specialist support – it is important that you understand what benefits you have (both pension and non-pension), what your options are (for generating income and capital), what the implications of your decisions are, including the tax position and how what you do when you first draw your benefits, will potentially impact in the future.
One thing that is certain… it is not a simple and straight forward decision. At Which Way Financial Solutions we can help individuals understand their position and options to assist them in making make good, informed choices about their retirement (crystallisation) options.