Pension Planning and Getting the Most from Your Retirement Income Retirement should be all about enjoying yourself, doing things you've never been able to do before. Long holidays, hobbies you never had time for, sporting pursuits - people can discover a whole new world when they retire. Yet this new world will only open up to you if you have the money to fund it. That means sensible planning now. It's never too early to start putting money aside.

What about State Benefits? you may ask. Well, they would just about provide enough for you to exist on - but nowhere near enough to live in the manner described above. If you have aspirations for your retirement, a private or occupational pension scheme is essential.

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EMF will help you make the best choices for a fulfilling future.

We will show you how to calculate whether or not you've worked long enough for your present employer to potentially qualify for a full pension.

We will look at any arrangements you might already have made and help you decide if they're going to provide a sufficient income.

If you want to retire early - you must ensure your contributions have created a sufficient fund.

Don't forget to check whether your employer's pension scheme is based on your basic pay alone, or whether commission, bonuses or overtime are included. You should also check whether it is a "final salary" or "money purchase" scheme.

A regular review is a good idea because your present arrangements could be affected whenever your circumstances change, or new legislation comes into force.

How to Get the Best Retirement Income from Your Pension Plan

If you're approaching retirement, your pension provider should soon be contacting you with important information about your retirement benefits.

They'll tell you how much money you've acculmulated in your pension plan over the years and normally how this may be used to provide you with a tax free cash sum, plus a regular income for your retirement.

If you're considering taking your pension early (and you may not have to retire to do this) you should contact your provider to ask for the information to be sent to you now.

Many people who have taken out personal pension plans over the years assume that their plan automatically starts paying their pension at retirement. However, this is not the case.

Your personal pension provides an accumulated fund of money called a pension fund. This fund can be used in two ways:-
1. Part of the fund can be taken as a tax free cash lump sum (the maximum amount is usually 25% of the total fund).
2. The remainder must be used to provide your pension (your retirement income).

This pension is provided through a guaranteed insurance product called an annuity. Remember, an annuity is paid for life - be it 20 years or only 2 weeks.

Finding The Best Annuity

Just as Banks and Building Societies compete for customers with savings accounts which offer different rates of return, so the various insurance companies offer different annuity rates.

But annuity rates vary much more than ordinary interest rates. The difference between the top and bottom companies can be as much as 25%!

Unless you take every opportunity now to find the best annuity, you could end up with a lower pension for the rest of your life.

EMF can be relied on to help you make the right choices. It is important that you receive the best advice. The kind of lifestyle you can enjoy in retirement will depend on it.

EMF Financial Services is authorised and regulated by the Financial Services Authority.