In particular, the notion of 'phased retirement' is fast gaining acceptance in situations where clients do not simply stop working one day and retire the next, but gradually move from full-time work to part-time and maybe ad-hoc days here & there before stopping altogether.

 
Phasing-in of pension income involves taking an approach where pension assets are not used all at once but are, instead, gradually accessed in segments so as to produce a stream of income that more closely matches a client's needs at that time. This can have important income and inheritance tax consequences too.

In brief, some of the main alternatives include:-

With Profit Annuities - The capital purchases an income at a minimum level, which is usually guaranteed for life, with an additional amount which is based on bonuses provided by the underlying with-profit investment fund.

Unit-linked Annuities - The capital is invested in a managed fund (or funds) and the income provided rises and/or falls in line with performance of the funds.

Unsecured Pension - Also known as 'pension drawdown' or USP, this involves the release of a tax-free lump sum from the pension fund whilst the remaining capital remains invested until required. Instead of using the capital to purchase an annuity to provide the income, the remaining fund is gradually encashed, either regularly or as one-offs.

Alternatively Secured Pension - A form of 'drawdown' for those age 75 and over who do not wish to purchase an annuity. It differs from USP in terms of the levels of income that can be drawn from the fund.

White Horse Financial Services can work with you to find which route or combination of routes is the most appropriate for you and your circumstances. Not only that, but as a client we will keep in touch with you and be there to help you cope with any changes in your future circumstances, amending and adjusting your financial arrangements where necessary