Using a combination of options
There are now a number of ways you are able to structure your money in retirement, which allow for more flexible combinations of products.Sometimes your circumstances may mean no single product quite meets your needs. You like the idea of a guaranteed income, but also want some flexibility.
The 2015 pension freedoms have made combining products easier to do and mean you are able to split your pension in a way that fits your own needs.
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How can I combine products +
It’s important to understand your costs/outgoings throughout your retirement. When considering combining products, you need to first understand how much you will need as a minimum to survive on in your retirement. Essentials such as heating, housing and food are bills that you can't really afford to take risks with, and so to start with we would suggest obtaining a guaranteed income for life to cover these.
Where you then have additional pension money you may want to think about how flexible you need it to be, when you need it, and what level of risk you are prepared to accept with it.
How might my products change through retirement +
As you become older, you may decide that you want to worry less about investment volatility and put more money into a guaranteed income, or you may become ill and need to review your finances – perhaps considering care costs.
Although we often focus on the here and now – and getting through the next few years – people are living longer. With that in mind, you need to make sure your retirement planning looks further ahead to consider such scenarios.