When you retire you will have a pension of some kind to help see you through your retirement years. Needless to say it is wise to consider all the options available before you decide what to do with your pension. This article provides more information.
If you have a private pension you are saving money into, you may already have heard of pension unlocking. The idea is that you can get access to some of the money you have held in your pension pot before you actually reach retirement age.
Now lots of people are asking: “Should I unlock my pension? How would my pension pot be affected if I did this?” It’s a valid question and one that is worth asking.
Let’s say you have a pension pot worth £400,000. If you thought “Yes, I’ll unlock my pension to get at some of that money,” you could unlock a sum from it to have now. The thing to remember is this will leave less money in your pot to survive on throughout retirement. So you have to balance the pros and cons of unlocking a certain amount now against having less in your pot when you come to retire.
Obviously everyone’s situation is different. This is why it is important to look into the situation and to get some professional expert advice on what to do if you are considering this route. Some people might benefit from it because it gives them the chance to do something now they may not be able to afford to do later on. However other people might prefer to keep their pension pot intact.
As you can see it makes sense to focus on how you will approach your retirement, and what you will do with your pension.
If you have a private pension you are saving money into, you may already have heard of pension unlocking. The idea is that you can get access to some of the money you have held in your pension pot before you actually reach retirement age.
Now lots of people are asking: “Should I unlock my pension? How would my pension pot be affected if I did this?” It’s a valid question and one that is worth asking.
Let’s say you have a pension pot worth £400,000. If you thought “Yes, I’ll unlock my pension to get at some of that money,” you could unlock a sum from it to have now. The thing to remember is this will leave less money in your pot to survive on throughout retirement. So you have to balance the pros and cons of unlocking a certain amount now against having less in your pot when you come to retire.
Obviously everyone’s situation is different. This is why it is important to look into the situation and to get some professional expert advice on what to do if you are considering this route. Some people might benefit from it because it gives them the chance to do something now they may not be able to afford to do later on. However other people might prefer to keep their pension pot intact.
As you can see it makes sense to focus on how you will approach your retirement, and what you will do with your pension.
