Once you have reached your retirement age, you have a decision to make on which type of pension income you wish to receive. Below are the main income options available.
• Scheme Pension – if you are a member of your employer’s occupational pension, they will pay you a secured taxable scheme pension direct from their occupational pension scheme.
• Lifetime Annuities – pay you a secured taxable income for the rest of your life and are purchased from insurance companies with your accumulated pensions funds. There are a myriad of annuity options and the merits of each one should be considered before making your final choice, as they cannot be changed at a later date.
• Drawdown – allows you to take an unsecured taxable income direct from your pension fund.