Whether you are planning to retire gradually or fully, you now have the flexible choice of providing for yourself and your family with retirement income. Living as a happy family requires enough secure income without worrying about paying the bills. Identify the sources of income and choose the right retirement income options for getting enough money to pay bills and other facilities. Retirement could last for 30 years or more, based on when you retire, so it would be a great option for saving more money.
Security and flexibility:
Estimating how long your retirement will last and how long you are going to live are two decisions that are dependent on how much you are willing to save. Retirement income options must be planned to last longer than you think. Sometimes, you could also make provisions for the dependants or family so you could receive the income of the unused money.
Just like any other income, your pension income is also taxable. When you are using the pension or retirement pot, then you can take up to 25% as a tax-free lump sum. The rest of the amount, used for providing income or the irregular lump sums, is taxable. The amount of income tax depends on total income earned during the year. Retirement income options secure income throughout the whole of your retirement.
Health and longevity:
People are living longer than they used to. According to recent research, 65-year-old men have a 50% chance of living till 87 and more. A 65-year-old woman has a 50% chance of living till 90. Choosing the retirement income options based on the longevity or lifespan would be a great way to get the right retirement amount. A good place to start is knowing more about the income that you have got and how much more you need.