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Pension wind-up: what now?

Mar 25 2009 08:46

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A Fin24.com user asks:

Our company pension fund is being wound up.

At 63, I now face a choice of what to do with my pension contributions paid over the years.

Do I buy into a retirement annuity scheme as a single premium, or invest in some other preservation fund?

Old Mutual responds:

The options you have will depend on whether, as part of the winding-up process, the employer is making alternative options available on a group level (ie where all employee reserves will be transferred to a new option), or whether the option to re-invest the retirement capital is being left to individual choice.

If you are given the choice of where to re-invest your retirement capital, you have the choice of a retirement annuity or a preservation fund. Each option has its strengths, and will depend on your personal needs and circumstances.

It is recommended that you contact your financial adviser or broker and complete a financial needs analysis on your retirement planning and preservation needs.

- Fin24.com

 
 
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