You’ve worked hard for your
retirement, but before you can start
enjoying it, you’ll need to decide
how your pension will provide the income
you need to live on.
In March 2014, the then Chancellor of
the Exchequer, George Osborne, announced
a radical reform of the pensions system to
give people greater flexibility to access their
pension savings. The new pension freedoms
took full effect from 6 April 2015 and have
given retirees a whole host of new options.
There is no longer a compulsory
requirement to purchase an annuity (a
guaranteed income for life for a fixed
number of years) when you retire. The
introduction of pension freedoms brought
about fundamental changes to the way we
can access our pension savings.
Pension freedom rules mean those aged
over 55 no longer have to purchase an
annuity to access their pension income
but can instead enter drawdown or take a
cash amount. There is now much greater
flexibility around how you take your benefits
from Money Purchase Pension (Defined
Contribution) schemes, which includes Self-
Invested Personal Pensions (SIPPs).