You’ve worked hard all your life in order to build up a decent pot of retirement savings. Now it’s time to reward yourself by relaxing completely – whether that means jetting off to an exotic yoga retreat or simply staying at home, pouring yourself a large glass of wine and turning off the phone.
If you think you may be a Tranquility Seeker then you’ll be want to know about the new pension rules coming into effect on 5 April 2015. If you start taking money from a define contribution pension after that date then you’ll have complete freedom over how you do it.
However, you’ll also want to be careful that you don’t spend too much, too soon. The average retirement in the UK now lasts for 30 years, so you need to make sure that your money will stretch that far – before you make any irreversible decisions.
What to consider if this Life2 looks right for you
To give yourself peace of mind, you may wish to use some or all of your pension pot to secure a guaranteed income. Alternatively, you may wish to leave your options open for longer by taking advantage of the new rules on pension flexibility.
To be completely confident in your choices, however, you may need to consult a financial adviser. They’ll be able to take all of your circumstances, needs and goals into account before advising you on what you should do. And, if you decide to keep some of your retirement savings invested, you can give them the hassle and responsibility of managing your investment portfolio – all while making sure that you don’t pay more tax than necessary.
If you don’t yet have a financial adviser but are interested in finding one, you can use our Find an Adviser tool.