Pensions & Retirement Planning

Can you afford your retirement?

As healthcare and living standards improve, so does our longevity. Once you have reached 65 years of age you could expect to live until your mid eighties or even longer.* This, along with the attraction of early retirement, means some of us could be looking forward to a happy retirement lasting perhaps more than 30 years.

At the same time, however, birth rates have been falling. Fewer couples are having children, and those who do are having fewer and leaving it later. As a result, a thriving workforce that was once more than able to support our elderly population is becoming far less able to do so.

So, whilst we may be looking forward to long and carefree days, finally free of the rat race, the question needs to be asked: Is our pension provision good enough to pay for it?

*Source: National Statistics Office and Government Actuaries Department, National Life tables published in 2014, based on 2011-13 estimated figure for life expectancy.

Take stock then take charge

The first step towards getting on track is to understand where you are now. How many companies have you worked for and how many offered pension plans? How many plans have you taken out yourself? What other provision do you have? For example, savings accounts, investment plans, perhaps a second house or even your own business.

Then you need to take charge of the situation. Your pension fund could end up as one of the largest assets you have, but how much is it actually going to pay you? £10,000 might buy you a one-off luxury trip round the world, but it is not so impressive if you need to plan many years of holidays.

Our comprehensive review service

Our pension review service could help you get on track for your retirement. We take a comprehensive look at what provision you have, where that provision is going to place you, consider how this fits with where you want to be, and then, if appropriate, suggest the best options to make up any shortfall.

Are you about to retire?

It takes many years of planning, saving and sacrifice to build up a significant retirement fund and, when you retire, you want to be sure you are getting the best income from your pensions and your other savings; however the range of options available can be bewildering.

Should you take a level annuity, an escalating annuity, with or without guarantees; or are you eligible for an enhanced or impaired life annuity? Do you want to provide an income for your partner in the event of your death? Do you take the annuity offered by your pension provider, or look for a better deal elsewhere using an 'open market option'? Should you look at some of the other choices available, for example, an investment linked annuity, or perhaps you might not want to take an annuity at all? Could you defer taking an annuity until you are older and take an income directly from your pension fund instead using an income drawdown plan? Do you understand the risks and benefits involved of each of the choices in front of you? Can you save tax by taking your pension benefits in different way? Should you invest some of the tax free lump sum for more income? 

The liklihood is that at retirement you will have only one chance to get it right, and if you have never taken professional financial advice before this is the one time when you certainly should do so.   

For more information, please contact us so that we can outline the possibilities for you, without obligation. 

A Pension is a long term investment and the fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.