Citizens Advice is now offering guidance through the Pension Wise service - a new free and impartial government guidance service set up to help people understand their pension options.
New pension reforms are now effect which give people over 55 the opportunity to decide what they do with their defined contribution pension pot.
If you are over 55 and have a defined contribution pension you can now buy an annuity, take all your pension out in one go, or withdraw it bit by bit and leave some of it invested. You can also mix and match your options – for example taking out just some and using the rest to buy an annuity. Usually you will be able to take out 25% of your pension tax free and the rest will be added to your other income in that year and taxed at your marginal rate.
The Pension Wise service aims to allow pension savers to understand their options.
Jennifer Fearon, District Manager of Citizens Advice Craigavon said: “Good guidance is a crucial step towards a financially stable retirement. Citizens Advice have a strong history of helping people. We already support people with many of the issues affecting retirement and we have many years’ experience working at the heart of communities, helping people get to grips with their finances, so it is a natural fit for us to help people understand their pension options and make choices for their future.”
Nigel Cinnamond, the Pension Wise Guidance Specialist at Citizens Advice Craigavon, encourages anyone who is over 50 and who has a defined contribution pension to use the service. Nigel said:
As a trusted, independent charity, Citizens Advice is in a unique position to deliver face to face pensions guidance. Contact Citizens Advice Craigavon to find out if you are eligible for guidance. An appointment can be arranged to see Nigel in either the Lurgan and Portadown office by calling 028 3833 3571.