At the point you decide to start taking your pension fund as income, you can choose to take up to 25% of your fund as a one-off payment, free of tax. Of course, you don’t have to take any at all if you prefer.
With some providers you can choose to take additional cash lump sums, however anything above this will be taxed at your marginal rate. But beware, the more you take out at this stage, the less you’ll receive in your regular payments.
Health and lifestyle factors considered
Current and past health conditions and your lifestyle, as well as those of anyone who is named on the annuity, could significantly increase your annuity income. By giving HUB Financial Solutions as much detail as you can, from your postcode through to your lifestyle and medical history, they could help you achieve more income during your retirement.
Protection from inflation
You can choose for your income to remain at the same amount, as it was the day you set up the plan. Or, you can choose for it to increase annually to offset the effects of inflation, however this will result in a lower starting income.
Choice of payment frequency
You can choose how often you want your annuity income to be paid. For example, you may want to receive it monthly or annually, or perhaps every six months? You can also choose whether you want to be paid in advance or arrears.