An hour to plan your financial future?
New research carried out by Legal & General and unbiased.co.uk has found that more than one in ten people spend only an hour in choosing their retirement income. This is a very short time to dedicate to researching, choosing and arranging an income which will be paid to them for the rest of their lives.
By contrast, more than one in five spend at least a year in researching their retirement travel plans.
Choosing your retirement income is one of the most important decisions that you have to make, so you should make sure that you understand what you are doing. You may have more options than you think, including:
- An annuity (pension paid to you for the rest of your life)
- An annuity on special terms because of ill health or lifestyle factors
- Pension drawdown (taking an income directly from your pot without committing to an annuity)
- Flexible drawdown
- Exchanging your pension for a one-off lump sum
Read more about your retirement options on our website here.
Michelle Cracknell, TPAS's Chief Executive, said:
"Someone aged 65 is likely to live for another 25 years, to the age of 90. They really should spend more time deciding on what type of income is right for them. The worst thing is, and some of the horror stories we hear is people who have rushed into making a decision, and haven't disclosed all of their information. So they're not shopping around and getting the best value for money."
Pensions do not have to be difficult or confusing. Our mission is to make pensions accessible to everyone, so if there is anything you do not understand, please contact us and we will be pleased to help. To discuss any pension-related issue: