Retirement Planning
At some point most of us will stop working and will likely see our earnings decrease. Coupled with this, as a whole, we are living longer and are less able to rely on the support of salary-linked pension incomes: It has therefore become even more vital to take the time to plan for your retirement, even when it may seem in the dim and distant future.
It is really a three stage process which can evolve throughout your lifetime, and one which you may have already started without even realising it:
1. Planning now for your retirement
As a general rule, the earlier you can begin this, the easier it becomes to achieve your long term retirement goals. Legislation, products and markets are constantly changing, and so taking expert financial advice to guide you through those hurdles can really make the difference in the long run.
We work with you to put together a suitable plan to achieve their objectives, influenced by your personal situation, including:
- The targeted retirement income to support your objectives.
- The number of years until you envisage cutting back on work.
- Your State Pension entitlement and consideration for any existing pension arrangements (private and company-sponsored schemes).
- Current and projected affordability for retirement savings contributions.
- Your “life” plans: both in the short and long term.
- Personal tax implications: these will vary for each individual.
- Any immediate savings access requirements: under current legislation, most people cannot make withdrawals from an approved pension until at least age 55.
We work with our clients to analyse and prioritise these considerations, working backwards from the point of your ideal retirement to your current position, plotting a way between the two points with a savings plan suited to you.
To give you peace of mind we regularly appraise the progress of these savings to ensure that your plan stays on track, or to reflect changes in your goals.
Though retirement planning is linked synonymously with the word “pensions” you might be surprised to hear that, whilst a vital part of a retirement plan, a pension makes up only part of your retirement portfolios. We will also consider other savings and investment options for part or all of your portfolio: these may include (but not limited to) savings accounts, ISAs, a general investment account, bonds, and alternative products like venture capital trusts. Each carries its own advantages and disadvantages that we would discuss with you in depth prior to any action being taken.
2. Options at retirement
It can be just as important to take advice once you reach the stage where you are considering taking your retirement income. Many of the choices you make at this time will affect your lifestyle for many years to come, and some are irreversible, so you need to make sure they're right.
Options are varied and the most appropriate decisions will be dependent on your individual circumstances, and the types of savings you have put aside for this moment.
We are experienced in providing advice on the many options available in funding your retirement, including:
- Defined Benefit Company Pension Schemes
- Defined Contribution Company Pension Schemes
- Private/Personal Approved Pension Arrangements
- Impaired Life/Enhanced/Smoker Rate Annuities
- Investment Linked Annuities
- Unsecured Pensions (For Example, Income Drawdown)
- Non-Pension Commencement Lump Sum withdrawal planning
- Phased Retirement
- Pension Lump Sum Investment/Portfolio Planning
- ISA Investment
- Income Producing Investments
Being independent we are able to “shop around” from the whole market for the best solutions for you personally.
3. Managing your retirement
The job is never done.
We will continue to monitor and review your savings even once you have started to draw upon them in retirement, checking that they are performing as expected and ensuring that they are still structured in the best possible way to provide you with the most appropriate form of support.
The value of your investment or pension can fall as well as rise and you may not get back the original amount.
The value of your investment or pension can fall as well as rise and you may not get back the original amount invested.
The levels bases and reliefs from taxation are subject to the individual circumstances of the investor, and may be subject to future change.
Tax treatment depends on the individual circumstances of each client and may be subject to change in future.