What is phased retirement?
Phased retirement (also known as ‘staggered vesting’) allows the purchase of a pension to be phased allowing flexibility when considering retirement.
Phased retirement works by splitting the pension into many segments each of which could be encashed separately. The pension income is then composed of a combination of tax-free cash and annuity from the individual segments. The remainder of the fund remains invested and may benefit from any market growth in its underlying investments.
From April 2015 there is now much greater freedom to choose how you use your pension fund and the rules regarding phased retirement are now largely irrelevant as there is so much flexibility in how you take your pension.
The importance of seeking professional advice
Eastcote Wealth Management has years’ experience in this area and can help you to access the options available to you and help you to maximise your pension on retirement. Please be careful with your hard-earned pension savings and think very carefully before cashing them in or moving them. If you’re offered a scheme which seems too-good-to-be-true, it probably is. For further information, see www.pensionsadvisoryservice.org.uk/pension-problems/making-a-complaint/common-concerns/pension-scams.
Please do not hesitate to contact us if you would like to discuss your options in more detail. Remember, we offer a free no obligation consultation and will be happy to help if we can. We take a holistic and long-term approach to wealth management, opting to build a lasting relationship with you and provide a tailored solution for all of your investments.
A pension is a long-term investment. The fund value may fluctuate and can down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. Occupational pension schemes are regulated by the pensions regulator.