Last week we covered the time-honoured method of taking an income from your accumulated pension funds, by buying an annuity. While I’m convinced they still have their place, there’s no denying that unsecured income is a far more popular way of taking money out of your pensions. So let’s look at what that actually means in practice.
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An annuity, or an income from a defined benefit scheme is a secured income, in other words, someone else takes responsibility for making sure that income is paid no matter what. Unsecured income, by contrast, has no such third-party to rely on. Since April 2015, your pension fund is yours to do with as you like, and so you need to understand the different options for unsecured income and the pros and cons of each.
Resources mentioned in this episode
Website: Find a financial planner
Course: Learn How To Invest– Don't forget the discount code of PODCAST25 when you sign up
And here's a kind-of transcript of today's show:
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