Before people retire, they generally have things they want to do outside their work life, this might include raising a family, travelling to new destinations, furthering their personal skill set and education as well as those of their children.
Whilst saving into a pension is a key fundamental saving system that every working person needs to think about and be involved with, there are of course questions raised about short and midterm investment schemes that can enable clients to realise personal goals before retirement. It is by no means uncommon for employed people to have more than just their defined benefit pension. The contribution towards a personal pension allows a greater flexibility over retirement options than would be held by a person with just one pension scheme in place.
Retiring earlier than a defined benefit pension scheme stipulates
Drawing on a defined benefit pension before the scheme’s retirement age is either disallowed or is likely to incur a substantial penalty with respect to the amount of income that can be successively withdrawn from the pension. In order to bridge the gap between early retirement, many people set their sights on working part time with a supplemental income provided via a personal pension pot or the purchase of an annuity product.