I’m a bit worried my private pension fund won’t last long enough, how do I prevent it running out?
- Neil Adams
- Head of Pensions
That depends on how quickly you spend it. You have the ability to take up to 25% of your pension as a tax-free lump sum when you retire, but if you plan on taking out a big lump sum then there is a risk that your pension savings will run dry too quickly.
Income Drawdown or Annuity
If you are drawing your retirement income from your pension fund (known as pension income drawdown), there is a danger that the fund could run out. You therefore need to be careful and continually monitor the level of income taken and the investment growth on the fund.
To check how long your pension will last in drawdown, use our Pension Drawdown Calculator here.
If you want to guarantee that you won’t outlive your savings, then you may want to consider using some or all of your pension savings to buy a secure income for life through an annuity.
An annuity is essentially an insurance contract that pays you a monthly income until you die, whatever age you reach. Please contact us to speak with one of our pension advisers and find out more.