We can all agree that retirement can be both daunting and exciting in equal measures. With government funding for retirees, i.e. the State Pension, being insufficient on its own and with the added stress that comes with being on a fixed income. We at Odyssey Wealth understand the importance of making the right decisions leading up to your retirement.

The government is in the process of one of the biggest pension shakeups for generations. This will see new laws coming into effect; essentially giving consumers the ability to use their pension savings in a manner that they see fit. The proposed changes will enable people over the age of 55 (57 in 2028) to access their entire pension fund/s should they wish to do so.

We at Odyssey Wealth believe this is great news and provides a great opportunity for our clients moving forward. However, where the government gives with one hand, it takes with the other and this leads to the additional considerations you need to take into account when looking at the options available. Tax considerations and how long the fund will last being major considerations.

When it comes to withdrawing an income from your pension, until the new changes come into effect, as it stands there are 3 main options by which one can take retirement income from their pension funds.

            Current Rules:

• An Annuity, where you used the pension funds to buy an income for life
• A Drawdown Pension, where you keep the funds invested and withdrew an income up to maximum allowance set by the government
• A New Flexible drawdown, where if the individual has a guaranteed income of £12k per annum they can take as much or as little from their pension.

New Rules (2015):

• Everyone will be entitled to the Flexible Drawdown option without the need to prove an income of £12k per annum. However the tax situation is now considerably more complex, with a bit of planning and professional guidance this can be managed.

With the myriad of options that will become available it is now imperative that you engage expert Independent Financial Advice. Our goal is to make sure our clients can enjoy their retirement safe in the knowledge that they have the financial resources to do what they want when they want. We design and implement a retirement strategy tailored to your individual circumstances and one that will suit you.

We are fully covered by our professional indemnity insurance and furthermore we are also covered by the Financial Services Compensation Scheme (FSCS). Can you afford to go down the non-advised route with no protection or no comeback at all?

To find out more about how we at Odyssey Wealth can help with your retirement income planning, please feel free to contact us. We offer an initial exploratory meeting at our expense and you are under no obligation to use our services.