On 6th April 2010 the minimum age at which retirement benefits may be drawn rises from the current age of 50 to 55. Anyone reaching their 50th birthday before this date has two options:

• Take all, or some of your benefits from age 50.
• Defer taking any benefits for a minimum further 5 years.

Most pension arrangements will provide a tax-free lump sum which could be spent or invested as you wish: to repay debts or supplement income for example.  All pensions will enable you to draw  an additional regular income regardless of whether you continue to work. Taking benefits now does not prohibit you from making further pension contributions and continuing to grow your retirement fund.

It must be remembered that accessing your pension prior to your scheduled retirement date will mean that you will have a smaller pension fund when you actually come to retire.

Releasing cash may sound tempting but serious consideration should be given to whether you really need to access these funds now or whether funds can be obtained elsewhere. EBS can offer professional advice on all aspects of financial planning and may be able to arrange alternative funding for homeowners.

Please bear in mind though that if you do not elect to take benefits before 5th April 2010 the right to do so will be deferred until you are aged 55 minimum. Please also see our comments regarding ISAs for those approaching age 50.

Posted in individuals |