Over recent weeks and months, much has been written in the financial press about the new freedom and flexibility rules which come into effect from April 2015.

Here is a simple guide to the four options available from next year.

A guaranteed income for life

You could be paid a set amount every month for the rest of your life, so you’ll know exactly how much you’re getting and when.

Flexible access

Flexible access to your pension will allow you to take out what you like when you like. The rest is left invested so it has the potential to grow.

Take it all in cash

You will be able to take all your pension pot out in cash however much it is, the first 25% is tax free, with the balance being taxed at your marginal rate.

Leave it for now

Keep your money invested so it has the potential to grow, and enjoy the tax advantaged status of your pension.

Whilst there are four simple options, how and when they are used is the difficult part of financial planning, for many a blend of all of these options may be the most suitable option.

It is important to understand that when drawing any pension benefits, only the first 25% is Tax Free and the balance is taxed at your marginal rate.  It is possible to take some segments of your pension as Tax Free and some parts as taxed income; you do not have to take all your Tax Free Cash in one go.

Our best guidance is to take advice, and we are here to help. Please do talk to one of our consultants.