The introduction of the recent pension forms in April now allows retirees complete freedom over how they access their pension funds.
No longer will retirees be forced into the purchase of an annuity (though can still take this route if they desire), but could manage their own income via the process of income drawdown. This means that people are being expected to make more and more complex decisions about their financial future.
The Pension Wise System
The Pension Wise system does offer guidance and outlines all of your options for free. However, it is lacklustre in that it cannot give recommendations and it does not constitute formal advice.
You can find the full government pension wise page here.
With the decision you make when taking out your pension being so important, many people will want to (and probably should) seek independent financial advice.
The Retirement Options Alternative
My Retirement Options have recently launched an alternative to the government’s free Pension Wise system, in the form of their own retirement planner. This asks a series of questions which will get you thinking about your pension decisions and should be used in tandem with the pension wise system:
However, what it will do (and what the Pension Wise system cannot) is to connect you with a trusted local financial advisor. They will then offer you a free consultation to explain your options in further detail.
Whilst you don’t necessarily have to follow this advice by the word, it will certainly help you get a broader understanding of your options, and which may be best for you, compared to the Pension Wise System.