The State Pension age is currently 66 but is due to increase to 67 in 2021. While this change was introduced in 2014; the impact on people retiring at 65 has only recently been the focus of much debate; particularly in the context of the recent general election.
As the length of time clients will have to wait to access the State Pension is likely to increase; we are often asked when is a good time to access any private pension funds accumulated over the years?
The first consideration is the type of pension structure you have; and the relevant rules as to the minimum age at which you can access the fund.
If you have a Company Pension Plan – either as a Company Director or employee – you normally take your benefits at the company’s retirement age. With the company and pension Trustees’ approval, you may be able to take your benefits earlier (age 50 onwards); or keep working beyond the normal retirement age and delay taking benefits up to age 70.
If you are a 20% Director of the company and are under 60 you must dispose of your shareholding before taking benefits (after 60 there is no need to do so).
If you have a Personal Pension Plan you can take benefits from age 60, or delay taking benefits up to age 75.
Once you have ascertained the rules that apply to you; the next step is to consider how these rules fit in with your own retirement plans. Most clients only claim private pension benefits once, so the manner and timing of how you do so is an important decision that will take some thought.
If you plan to work up until the State Pension age (or beyond) you may decide to delay taking benefits until you stop working.
If your goal is to stop working as soon as you are in a position to do so, then the options as to how you can access your fund and your likely retirement income levels might be the trigger in determining when you retire.
Your retirement from work marks the beginning of a new phase of your life. It is a period of great transition and it pays to prepare ahead.
It can be a daunting topic and may seem overwhelming – if you find that this is the case contact Harvest. We will explain your options and help guide you through this seemingly complicated process.
Harvest Financial Services are uniquely positioned to provide you with the broadest possible range of investment options.
When should I Access My Private Pension Fund? – For more information, or to arrange a meeting to discuss your retirement provision needs, please contact us on 01 2375500 or email us at firstname.lastname@example.org.
This marketing material has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and;or capacity for loss of any particular person. It should not be relied upon to make investment decisions.