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Phased Retirement Annuities
This is suitable for people who have large funds usually over £100,000. In Phased retirement you would use your fund to buy small clusters of separate plans called segments. These segments would then be used to purchase annuities at different time.
With this type of phased retirement, you have a choice of either cashing in each segment separately and taking the tax free cash from each segment, or alternatively taking all the tax free cash and then using the remainder of the fund to purchase the segments required to buy an annuity.
There should be enough money in each segment to purchase an annuity, as most companies have a minimum amount with which an annuity can be purchased.
This type of retirement option is ideal if you wish to ease into retirement and use part of your pension as an income so you can work lesser hours. Also if a spouse was to die, then this would mean an income for the surviving spouse. In recent years it has been overtaken in popularity by phased income drawdown.
For more information about your annuities and your retirement options simply complete the enquiry form or call us today on 0845 676 1010 to speak directly to our experienced annuity advisers.
