A combination of phased and unsecured retirement option could benefit you
Very often you may go for a combination of two types of plans to utilize your pension funds thus making a judicious mix of the retirement options you have. It also means that you will start drawing an income from your pension funds from the very first date. Of course only a part of your pension fund will be utilized for the purpose while keeping the rest part in tact just like the interest only mortgage.
You calculation of the part of pension fund to be invested will depend on several factors. First, you cannot invest in unsecured retirement options more than 25% of the fund you have. Second, you will have to calculate the total income you require and how much of it will be tax free. If you combine both unsecured and phase retirement pensions options, you will have several income drawdown plans to be activated year after year, adding to some extent to your existing income. This will make you economically secure and give you the peace of mind.
If you decide that further increase in your income level is necessary at a later date, you can increase withdrawal rates. However, you have to be within the prescribed limit that you cannot exceed. Conversely you can start earning an income from another part of your pension fund. An expert assistance could help you to find out the best judicious mix of the two plans and their methods of implementation.