55 and taking your 25% tax free cash--tread carefully.

After saving for your pension throughout your working life you deserve the opportunity to take a large cash tax free lump sum from your pension pot when you reach age 55.
Many people use the cash for credit card debts, loans, mortgages, weddings, home improvement, holidays, new property or new car.

Once you take the full 25% tax free cash sum make sure you find a secure home for the remaining 75%. Whether it is invested for a later day or buys an annuity do your homework. A few things to check.

• Make sure any advice you get comes from a FCA regulated financial advisor
• Check the pension provider paying the annuity or investing the remaining 75% is registered with the FCA,
• Do your homework on the investment fund, the value of flexi access drawdown funds can go up and down.
• Make sure you understand the risk profile of your investment.
• Review the charges on the fund
• Make sure you shop around for the best annuity rates for your preferred annuity 
• Check with your financial advisor what fee they will charge, depending on the size of your pot and the option you take the fee is likely to be between £1500 and £3000.
• If an offer looks too good to be true it probably is, watch out for scams and call pension wise a government guidance service if in doubt before committing.

Pensions are complicated and mistakes can be costly so do your homework and take a measured and considered approach. Be clear on your objectives and select qualified help and validate recommendations.
Remember you can check the Financial Conduct Authority register to ensure your annuity or drawdown recommended provider is regulated.

There are many annuity providers in the UK and you do not have to buy from your existing provider so shop around for the best deal,

The investment you make into a flexi access drawdown fund can go up and down so think about the level of risk you are prepared to take and match with a investment fund with the relevant risk profile.

Most pension providers offer a broad range of funds with a diverse risk profile and a choice of experts actively managing your funds, index linked or do it yourself options. The management fee will vary according to the option you select.

As you can see from the graphic below charges can have a significant impact on your pension pot.

Again, I hope you found this information useful and helped to guide you through the minefield of pension release. The content should not be construed as financial or legal advice.
For more information please visit our website www.retirementahead.co.uk and complete the enquiry form.