Generating income in retirement – ARF

ROIAt retirement age, you could invest your entire fund in a deposit fund and draw income from this throughout your retirement.  However, there is a requirement to take a minimum of 5% per annum from your Approved Retirement Fund so you may find that you are eroding your capital every year.  Therefore it may be prudent to consider a variety of investment products in addition to a deposit account that may help you achieve your objective of maximising your income in retirement.

It is possible to generate guaranteed income in retirement by purchasing either of these products:

  1. An annuity
  2. Guaranteed Income for Life annuity – with a potential additional payment on death.

Annuities (pensions). An annuity is the product you trade your pension in for when you retire, in order to get an annual payment for life. It’s a big one-off financial transaction, and it’s important you get it right as you can’t change your mind. It’s important to search the whole market for the best deal and you may want to consider a combination of products to satisfy your requirements.

Its important to remember, that you do not have to buy your annuity from the company your retirement fund is currently with.  You only get one opportunity to shop the market to get the best possible deal.

Let our qualified advisor help you through this process.  We can outline the various types of annuities on offer and can outline which combination may be suitable for you.

Remember, if your fund is currently with a bank or building society, they will only outline the products they have on offer.

At Future we make our recommendations based on an analysis of products and investments from the whole of the market, so you can be comfortable the solutions we recommend are the best available to suit your requirements.

For any questions you may have regarding generating an income in retirement: Contact Future