Is it right for you?

A sophisticated product, with flexibility off-set by other risks.

You should have a fund in excess of £250,000
You do not need the maximum tax-free cash at outset
You wish to pass on your pension fund to your heirs. Phased retirement offers this, particularly in the early years of retirement
You don’t wish to buy an annuity with all of your fund when rates are low
You may wish to vary your income from year to year

The more obvious risks are that:

the remaining fund needs to grow reasonably well to make up for mortality drag
the pension fund that remains invested could fall in value
annuity rates could fall even further
you live until age 75 and have to buy a conventional annuity (or theoretically an ASP/alternatively secured pension, though it is unlikely)

In addition, it needs monitoring and management and reviewing from year to year, so you need to be sure that you want this degree of ongoing involvement.

Thanks for your letter last week and for all your help in securing my pension. As you predicted Nor...
[read more]