Can you afford to take a lump sum out of your pension?

Are you thinking about withdrawing a lump sum from your pension? Whilst it can be an attractive option, it’s important to remember that a pension is designed to provide you with an income throughout retirement. Before making a withdrawal, you should ask yourself: Would taking a lump sum now affect the lifestyle you can comfortably afford? Could it mean you run out of money during retirement? Taking a lump sum from your pension Once you reach the age of 55, your pensions will be accessible. You're free to choose how ...

Why it’s important to prepare younger generations for retirement

We hope you feel confident in your financial security, including the provisions you’ve made for retirement. But have you ever spoken to your children or grandchildren about their pension or retirement plans? Research suggests their expectations could be far higher than the reality. According to a report from Scottish Widows, the average worker in their 20s faces an annual shortfall in retirement income amounting to £6,500. It’s a sum that could have a significant impact on financial security or affect retirement plans. The gap will be even wider ...

How far does the State Pension go?

For many people, the State Pension is an important part of creating a retirement income. Whilst you are hopefully taking other steps to boost this income, such as contributing to a Workplace Pension or investing for the long term, understanding what the State Pension provides is crucial. As the State Pension provides a reliable income, it can be used to provide some stability to your income. This is particularly important if you’re saving into a Defined Contribution pension and choose to take an income flexibly. It may not make up the bulk ...

How can you stop your pension running out?

Do you know how much the current State Pension is? It must be enough to live on, surely? It is often reported that people are ill-prepared for their retirement, and for good reason. Research from Scottish Widows suggests that nearly one in five of us aren’t saving enough into a pension. Many are increasingly relying on the State Pension to fund their retirement, but this is a risky plan. It was announced in July that the State Pension Age will increase seven years early, affecting over seven million people. Taking control of your ...