What happens on the day you retire?

As you reach retirement you need to know what actually happens on the day you retire, how you get paid your pension and what you need to do to.

I explore four different retirement scenarios, each illustrating a common way people access their pension funds. Tom is approaching 66 and will receive a state pension. Sarah has a company pension and is considering buying an annuity for a guaranteed monthly income. Mark is using a drawdown account, allowing him flexibility in accessing his pension funds. Lucy has a defined benefit pension, guaranteeing a specific monthly payment based on her salary and years of service. The text explains the features, benefits, and potential risks of each approach, providing valuable information for individuals navigating retirement options.

What are the main differences between the four types of retirement options discussed, and what are the advantages and disadvantages of each?

What are the key financial and tax implications of each type of retirement option, and how should retirees plan for these factors?

How do the different retirement options impact a retiree's financial security in the long term, and what strategies can be employed to mitigate risks?

[paulacollins]

Are crystallised pension still invested so may increase?

[butlerpa]

Labour Party mandate, spend every penny you earn, never save for your future, the Labour Party will look after you. Oops of course you can freeze in the cold weather.