Please note that this video does not constitute as financial advice, if you require financial advice please consult with someone who is registered with the FSCA.

Today we talk retirement, particularly on what your options are when you resign….(read more)

LEARN MORE ABOUT: Retirement Annuities

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

When the time comes for you to retire, or if you decide to change jobs, you will be faced with a crucial financial decision: what to do with your pension monies when you resign. This is a critical decision that will impact your financial future, as well as your ability to enjoy your retirement. To help you make an informed decision, we have put together some essential tips on what you can do with your pension funds after resigning.

1. Cash out your pension funds

One option is to cash out your pension funds, which can be tempting because you’ll have access to the entire amount at once. Before you decide though, it’s important to note that there are tax implications to consider, and that withdrawing your funds early could result in significant penalties. In addition, cashing out your pension funds means that you won’t have a regular income stream in retirement, which could leave you financially vulnerable.

2. Transfer your pension funds

Another option is to transfer your pension funds to another retirement plan or scheme. This could be a new employer’s plan, an individual retirement account (IRA), or a self-directed pension plan. Transferring your pension funds can be a good option, as it allows you to keep your funds invested and earning interest, while also providing you with a reliable income stream in retirement.

3. Purchase an annuity

Another option is to use your pension funds to purchase an annuity. An annuity is a contract between you and an insurance company, where you hand over a lump sum of money, and in return, the insurance company provides you with a regular income stream for life. Annuities can be attractive because they provide peace of mind, as you have a guaranteed income for life. However, it’s important to shop around for the best rates and to read the fine print carefully before making a decision.

4. Seek professional advice

Whatever option you choose, it’s important to seek professional financial advice before making any decisions. An experienced financial advisor can help you understand the tax implications and other complex issues involved, and help you make informed decisions about your pension monies that are aligned with your financial needs and goals.

In conclusion, when it comes to what to do with your pension monies when you resign, there is no one-size-fits-all answer. It will depend on your financial situation, your retirement goals and other factors. However, with a bit of research and professional advice, you should be able to come up with a plan that works for you and provides you with the financial security you need in retirement.