Retirees are given more control over their pension
New rules and guidelines have been set out which are intended to give retired people more freedom over how they spend there pensions.
The Treasury are set to bring an end to regulations which currently mean pensioners can be forced into investing in an annuity even when certain market conditions mean they could generate a higher income from other sources. In addition to this, as it stands savers are limited to taking a maximum lump sum of 25 per cent of their pension upon retirement and must used the rest to provide an income.
The Treasury now intends to let pensioners buy an annuity at 75 and let people cash in their pension pot to use however they see fit just as long as they have a proven secondary source of income.
Unlike previous generations in which retirement was a somewhat gradual process and tended to come at a time when individuals were ready to give up work, nowadays with longer life expectancies and individuals still feeling fit and healthy well into their retirement age, often we can be left feeling redundant and unhappy with no idea about what to do with all of our new found free time.
There are lots of things to consider when we give up work, even the fact we will not be seeing our friends everyday will make a huge difference to our day to day lives. A retirement coach is someone that can help you to consider and overcome all of these obstacles as well as helping you to ease into your new life.