Converting your pension fund into a regular income is probably one of the most important financial choices you'll make in your life. You don't have to make a choice until you're coming up to your chosen pension age. However, you need to think about what you want to do in your retirement to make sure you take the right option for providing your retirement income. Taking the time to plan before you retire can be time well spent so that you can get on with enjoying your freedom.
How much pension you'll have to live on depends on the size of the fund you've built up and annuity rates at the time you retire. However, other things, like your health, age and whether you have income from other sources, can also affect this. Then you need to think about what you'd like to happen to your funds when you die, your attitude to investment risk and whether you want to balance a lump sum payment with a regular income.
With so many options to choose from and issues to consider, planning your retirement can seem pretty daunting and complicated. That's why we always suggest that you speak to your financial adviser before making any decision.
Remember to get information on any entitlement you have to a state pension from The State Pension Forecasting Team.
Your options for income
Find out what your choices for income are when you come to retire.
Next steps
What to do next to make sure you make the right choice for you.
