Let flexible retirement plans be your next healthy investment

Flexible retirement plans are a fluid approach to retirement. Flexible retirement plans have a drawdown provision which lets you take a retirement income from your pension fund and continue to benefit from any investment growth on the remaining fund.

Why flexible retirement plans help you generate higher returns?
– With flexible retirement plans, you have a number of investment choices for your pension fund, therefore, a greater benefit of diversification.

– A ready-made Personal Pension lifestyle option which potentially reduces your exposure to risk as retirement approaches.

– Self-Invested Fund options that allow you to invest in a wide range of asset types other than the company funds.

– Tax efficient, as flexible retirement plans do not pay tax on investment income received or capital gains.

– You can switch your money between funds for higher growth opportunities.

What you need to be aware of regarding flexible retirement plans
– The value of your investment can go down as well as up.

– The value can fall below the amount you invested.

– If the total charges taken from your plan are more than any overall growth achieved, your plan will fall in value, possibly to even less than what you have invested.

– There are different risks for different funds.

– Tax rules may change in the future. Also, Inflation will reduce what you can buy in the future.

– There may be a delay in buying, selling, or switching to or from certain funds.

However, you should take financial advice to ensure that the size of the fund is suitable for your objectives to take the optimum level of risk. Stay invested until you decide to take your pension benefits.

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