Take control of your pension fund

Every type of pension scheme imposes restrictions on their members - often (though not always) due to legislation. However, different choices often incur higher fees or charges on the pension fund, or introduce risks which may not be obvious without specialist advice....from The Pensions Office.

What kind of freedom of choice?

Depending on your personal circumstances and requirement you might want and/or benefit from the freedom to choose:

• How and when to take a tax free lump sum from your pension fund
• How and when to take an income.....
• How and when your pension fund is invested
• Who should receive benefits....…

Control over your tax free lump sum

It isn’t possible to take a tax free lump sum from your pension fund until you reach the age of 55, but after that time you have a number of choices. You can take the maximum allowable lump sum immediately, or in stages, or defer taking a lump sum until a later date. Or you might decide never to take a lump sum at all.

Control over your pension scheme

As with the lump sum, 55 is the key age to consider taking an income from your pension fund. Also, as with the lump sum, you could start to take the maximum allowable income straight away. Alternatively you can take a lower income or, indeed, no income at all. The less income you take the more of your pension fund remains invested, of course.You have choices over which investment funds to select for your pension portfolio or take more personal control through more direct investments (as outlined elsewhere in this booklet).

Control over beneficiaries following your death

Certain options leave few, if any, benefits to be paid after your death. Others, though, leave most or all of your fund to one or more people nominated by you during your lifetime. Higher death benefits may mean a lower pension during your lifetime, but this is not necessarily so.For impartial advice...ask The Pensions Office