The words ‘pension’ and ‘retirement’ are invariably uttered in the same breath, but of course you don’t have to retire to start reaping the rewards. You could still be working, you could still own your business, but part of your overall income comes from your pension pot – it’s all about choice and flexibility.
Reaping the rewards from your pension
For most people, the earliest age they can take retirement benefits is 55 – although, as we continue to live longer, this minimum age may increase.
Broadly, you can take a tax-free lump sum of 25% of the value of your pension and you then have choices to make about what to do with the rest, whether you buy an annuity, whether you draw an income directly from your SSAS, or whether you consider transferring the pot to an alternative type of pension.
Further details regarding the limits and regulations relating to pension drawdown from a Hartsfield SSAS can be found here and our taking benefits form can be found here.
Making the right choice
From April 2015 legislation was changed to give greater pension freedom and so gives more choice to people upon retirement. The new rules mean that it is possible to receive your entire fund as a one-off income payment; whereby 25% of the fund would be paid to you free of tax, but the remainder of the payment would be subject to tax at your marginal rate.
Before you make any decisions it is important to consult your financial adviser. If you do not have a financial adviser you can find a local Independent Financial Advisor at www.unbiased.co.uk and we can work with them to ensure the right decision is reached for you.
Pensions are all about choices, of which the Hartsfield SSAS is just one – but one which we have found benefits many, many business owners.
To talk to the team at Hartsfield Trustee Services about our SSAS and other pension options, please get in touch.