Pension Options and Benefits for Savers

Individuals have various options for managing their pension pots at retirement, including withdrawing the entire amount, making regular lump sum withdrawals, or using a combination of strategies. While taking the whole pension pot allows for immediate access, it can push individuals into higher tax brackets and eliminate future growth benefits. Regular lump sum withdrawals offer flexibility and can be tailored to minimize tax impacts, but care must be taken not to withdraw excessively. Additionally, a significant issue arises regarding death benefits, as many savers neglect to complete an 'expression of wishes' form, which dictates who will receive their pension savings upon death; research reveals that 72% of adults have not filled out this critical document. In Switzerland, the government has proposed funding a 13th AHV pension through a VAT increase, potentially costing households an additional 200 francs annually, while raising concerns about the sustainability of such funding. This situation highlights the importance of planning for both retirement and the distribution of assets after death.