12 Sep Freetirees – Pension freedoms usher in a new generation income
Income From Your Pension
The introduction of pension freedoms has been a huge enabler for over-55s, allowing
millions to draw income from their pensions flexibly. Pension freedoms offer the opportunity
to transition into retirement by continuing to work with reduced hours beyond traditional
retirement age.
This emerging trend enables you to choose a middle path, allowing for reduced working
hours and more flexible quality leisure time, while also receiving your retirement benefits.
Taking a phased approach to retirement, new research shows, was the preference for half
of UK workers over 50, or five million workers.
Tailor retirement to your own individual requirements
The flexibility that pension freedoms gives means that older workers can tailor their
retirement to their own individual requirements, giving rise to a new distinct and more ‘free’
stage of life in between work and retirement.
A quarter (26%) of over-50s could see themselves continuing to work while collecting their
pension, but their motivation for doing so isn’t driven solely by economics. Keeping their
brain active and an enjoyment of work as well as the benefits of social interaction all play
their part.
Work–life balance has never been more important
Earning an income later in life also provides workers with the opportunity to continue saving,
which can mean higher retirement benefits in the future. The research highlights that a
work–life balance has never been more important to those over 55. Pension freedoms have
allowed them to throw off the shackles of a traditional retirement and follow a plan that suits
their individual needs. While historically people benefitted from generous final salary
pensions, one drawback of these was that they didn’t offer much flexibility to decide how and
when to take benefits.
The pension freedoms have changed the way people think about retirement and are
enabling the rise of a more flexible transition into retirement, including allowing people to
choose to start accessing some retirement savings to support a reduced working pattern.
Freedoms to continue to live life on your own terms
Pension freedoms have allowed older workers to be more flexible, creating a distinct phase
in their later life where they can alter their working pattern to their needs. This allows them to
continue working beyond traditional retirement age while also having more time for leisure,
for family, for volunteering and to pursue hobbies and travel.
The research also highlights another point that older workers want to be able to continue to
live life on their own terms, and pension freedoms allow an increasing number to enjoy a
new life stage where they can combine reduced working hours with enjoying more leisure
time.
What is your financial action plan?
For many people, it’s not clear where their money will come from when they no longer
receive a salary – and that can be stressful. But don’t worry. With our help, you can create a
plan of action you can take today to prepare for the life you want tomorrow.
Speak to us to arrange a meeting today on 020 7562 5767 or send a message via our Contact Form.
A PENSION IS A LONG-TERM INVESTMENT.
THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN, WHICH WOULD HAVE AN
IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
ACCESSING PENSION BENEFITS EARLY MAY IMPACT ON LEVELS OF RETIREMENT
INCOME AND YOUR ENTITLEMENT TO CERTAIN MEANS TESTED BENEFITS AND
ARE NOT SUITABLE FOR EVERYONE. YOU SHOULD SEEK ADVICE TO
UNDERSTAND YOUR OPTIONS AT RETIREMENT.
PENSIONS ARE NOT NORMALLY ACCESSIBLE UNTIL AGE 55. YOUR PENSION
INCOME COULD ALSO BE AFFECTED BY INTEREST RATES AT THE TIME YOU TAKE
YOUR BENEFITS. THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE
BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION AND
REGULATION, WHICH ARE SUBJECT TO CHANGE IN THE FUTURE.
THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY
NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.
Sorry, the comment form is closed at this time.