Many of you will be coming up to retirement and making important decisions about your final salary pension.
If you are lucky enough to have a final salary pension scheme then you will have the option to take up to a certain amount as a tax free cash lump sum, and then your regular pension income for life. The higher the lump sum you choose to take the lower the income you will receive in retirement.
That is a trade off that needs to be thought about carefully. Hopefully with the help of an independent financial adviser you can weigh up the pros and cons and make the right decision for yourself.
Once you have decided how much tax free cash, or lump sum, you will take from your pension you will then need to think carefully about how to invest this money. It is an important lump sum of money. For some it will be something you have effectively saved up for over many years.
You could choose to spend it on something you have been planning for a while such as refurbishments to your home, or even an extension, a new car, a holiday etc. You could choose to save it so that you have extra cash for a rainy day. Or you could choose to reinvest the money so that it can generate some additional income for you now and allow you to access it for spending any time you need to in the future.
With deposit accounts now guaranteeing to lose you money it is a painful decision to leave it with a bank or building society. So investing can sometimes be the right answer. To help you invest wisely it would be advisable to get some expert investing and financial planning advice to make sure you invest according to your needs.
I think too many investment advisers concentrate on the wrong things when investing money. Some can look for high gains, some for steady values, others might offer you exotic products. The simple, common sense approach would be to invest according to what you need your money to do for you.