Riding the retirement wave

This week we've been thinking about pensions. From today there is the new and total freedom to do with your pension exactly what you please.

For those whose private pensions have suffered from falls in the stock market and who are forecast tiny sums a year when they reach retirement, the option to take the money and run is attractive. 

We explained the pros and cons with the help of some fifty-something surfers from the Wessex Surf Club - Gary and Guy. Here's what happened in Bournemouth.

If your pension pot is only say £30K - about average - some feel there's little point putting off taking it. 

But if you're still working and earning say £25K - if you take your pension pot in one go you will be hit for higher rate tax - wiping out thousands of that nest egg. Another option would be drawdowns - taking a little as and when you need or want it.