13:23 11 April 2013
A retirement account, just like any other personal pension plan, is a good way to save for your future while enjoying favourable tax relief. The only difference is that with this plan, you can save for your retirement during the retirement planning stage. It also gives you the option to either phase your pension or move wholly into income drawdown all in one account.
Retirement account offers unique features and benefits. These include:
Keep in mind that you’ll only be eligible for this type of account if you’re under the age of 75 by which age, you must use your value of your retirement to either transfer to another pension provider or to buy an annuity that will give you income for the rest of your life.
The amount of income that you receive from your pension plan will not be fixed. This will depend on several factors, which include the amount you get after taking your pension, which isn’t guaranteed. This means that the amount can either go up or down.
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