Tell me moreInvestment options
- Tax efficient investments
- Investments for everyone
- Investments for children
- Retirement planning
Expert advice
Existing Customers
Help and guides
Approaching retirement
Time for a final check of your plans
As you near retirement, you will still need to make some important decisions. There’s still time for a final review and an opportunity to make any final adjustments.
As you approach retirement you’ve probably got a clearer idea of how you’re going to spend your retirement years. Hopefully, this will give you a more accurate idea about how much money you’ll need.
Possibly the most important decision you still have to make is what to do with your accumulated pension fund.
You have a number of options about what to do with your maturing pension fund. You can:
- Use all of the fund to buy an annuity
- Take up to 25% of the fund as a tax-free lump sum and use the rest to buy a smaller annuity
- Buy an annuity in stages rather than all at once - useful if you carry on working part-time
- Transfer your fund to an income drawdown plan. This lets you take some income while your fund stays invested but is normally only suitable for large pension funds
If you decide to take a tax-free lump sum, you must do this before age 75.
You may have to pay income tax on your annuity or income drawdown payments – depending on your total income. You can shop around for the best annuity deal – you don’t need to buy your annuity from your pension provider.
If you have any non-pension savings and investments, don’t forget about them. Make sure they continue to work as hard as possible for you, but watch out for short term higher risk investments when you’re nearing retirement. If the stock market suffers a major fall, it could have a damaging effect on your retirement pot.
Investments
RBS lump sum investment accounts give you the choice of fixed term and open ended plans. Fixed term plans can offer growth with capital security as long as the plan is held to the end of the term. If you’re looking for an open ended plan, our Cautious Growth Fund limits your exposure to investment risk – crucial as you approach retirement.
Savings
RBS savings accounts can offer a safe haven for your short term retirement savings. We offer instant access and fixed term accounts – handy if you don’t need access to your money for a year or more.
Tax efficient investments and savings
Don’t forget to make maximum use of your ISA allowance if you can.
At every stage of retirement planning there will be important decisions to make. If you’re not comfortable making these decisions on your own, get support from someone who can give you professional guidance.
If you have a large pension fund, it could be best to shop around for the best annuity rates or find out about your income drawdown options.
At RBS, we can help you find the best annuity deals. Even if we didn’t arrange your pension, we can still give you the no obligation, personal service you need.
Inheritance planning
It’s time to make sure you don’t leave your wealth to the taxman.