It is important to invest some time in planning how to get the most financial benefit from your investment in your pension funds
There are two that are allowed under Revenue Rules; Approved Retirement Funds (ARF’s) can be viewed by clicking here and the other is to Purchase an Annuity
An annuity is a very simple financial plan as your pension fund is used to purchase an income.
The income to be paid is based on the current annuity rates and the size of the fund so the amount of income will be defined by the current rates, how much you have to invest and what other options you select.
There are options to consider that will have an impact on the income, for example; is the income to be guaranteed for a number of years, is there a spouse pension to be included or is it to be your income for your lifetime and you may be taking a tax free cash lump sum.
The value of your investment may go down as well as up.
Past performance is not a guide to future performance.
This is an overview of an Annuity and the decisions to make are very important as this may be the last decision to be made regarding your income post retirement.
You will need expert advice and the key fundamentals of that advice is that each person will have different personal and financial circumstances that need to be taken into consideration before making the decision.