If you are over 55, you probably saved a substantial amount of money over the years in pension funds and are trying to work out if you have enough to retire now or in a few years’ time. You might also be wondering when you should access it and what retirement options you will have.
There are two main Options At Retirement, Approved retirement funds or an Annuity pension.
We specialise in this area and have a particular way to set them up so that it is more likely that they will last you longer. We also set them up so that when there are market falls, your income is not affected.
When it comes to ARFs (Approved retirement funds), one of the biggest issues is making sure you do not outlive your money, ie it runs out while you are alive.
Using the Drawdown illustration, you can put your details in and see what return you need to make sure you don’t run out of money, or how long it will last.
EXAMPLE (Actual Client): Larry was being offered an Annuity pension by his employer pension advisor, he said they were hard to get through to and was a bit unsure about his decision (He had the forms filled in already and about to return his decision in writing to take an Annuity).
So I explained the impact of his death to his wife with an Annuity, I also pointed out that it is not reversible and it is probably the worst time in the last 100 years to be doing it. I explained the background to ARFS, why they were introduced and the fact that they do not disappear on his death but just transfer to his wife.
He definitely liked them, so when I showed him how we set them up so that they should last a lot longer than normal and he had pension income secured for a minimum of the next 5 years regardless of markets, he went for it. €464,000 was invested about 2 years ago, having drawn out €2,000 a month, the fund is still actually higher at €475,000.
This is not the norm when it comes to ARFS, just pointing this out, we advise all our ARF clients that the funds will drop because you are withdrawing the money out. Larry got lucky so far but is very happy.