As you approach retirement there is a lot to think about. 

• Your retirement objectives.
• Will my circumstances change in the future?
• How best to draw an income.
• Where will I draw my income from?

It is important that you sit down and put a plan together to ensure that the income you received in retirement is sufficient to last. McGarrie Vahey & Partners have 40 years of experience in this area. As you approach retirement it is important to understand what you will need to ensure that you maintain your standard of living. Putting together a detailed plan is important to make sure all bills are covered in retirement and you do not have a shortfall.

Future Change of Circumstances

You will find throughout your retirement that you may have a change of circumstances that will have an impact on either short term of long term spending. Again our advisers can sit down and work alongside you to ensure that provisions are put into place.

Our cash flow modelling reports can also build in one off expenses to show what affect this will have on your retirement income in the future.

Taking your Income

In retirement there are number of ways that you can draw your income. The two main options that you have are : 

To purchase an annuity (This will provide you with a guaranteed income for the rest of your life. The income can be built to suit your needs ie spouses benefits, with guarantees and indexation).

To take your income via Flexi Access Drawdown. This puts you in control of the level of income you take how you take it and the frequency of the payments. The payments can be taken monthly, quarterly, annually or a series of ad hoc withdrawals as and when you need. With Flexi Access Drawdown your money will remain invested and it is important to remember that excessive withdrawals will erode your capital. 

Where will I take my income from?

When you do retire you may have other sources of income as well as the pension provisions that you have saved into.

It is important that all income sources and investments are taken in to account when putting a plan together. This will ensure that you are drawing an income in the most tax efficient way.

The main sources of retirement income are :

• Personal Pension Plans
• Workplace Pension Plans
• Property
• Selling a Business
• State Pension
• Other Assets such as ISA’s, Stocks and Shares, Premium Bonds, Investment Bonds, Bank Accounts and other Savings.

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