What happens if I die before spending all my pension pot?
Any unspent money in your pension pot can be passed on to your beneficiaries free of inheritance tax. This makes your pension a potentially very useful tool for inheritance tax planning.
What if I have a final salary pension?
If you are lucky enough to have a final salary workplace pension, then you don’t need to do anything – this will pay out to you automatically once you reach retirement age. It is sometimes possible to transfer out of a final salary scheme to get a lump sum, but it is usually compulsory to take advice on this so that you fully understand the implications.
I want to phase my retirement
Pension freedom makes it much easier to retire gradually. You can draw on your pension pot from the age of 55 onwards, so you could (for example) reduce your working hours and use your pension to supplement your income, before entering full retirement.
Where can I find more information?
Talk to a financial adviser to discuss your options in retirement. Most financial advisers offer a free initial meeting, and many listed on unbiased.co.uk also offer a free pension check. This should give you a good idea about whether advice could deliver value for you.
Search for an adviser here.