Retirement Planning
Our job is to make pensions simple for you and simple to understand.
Pension planning can be a complex and difficult discussion especially when you do not know what pension savings you have, what you want to achieve in retirement, and the BIG question…
WHEN CAN I RETIRE?
“32% of the male population and 39% of the female population do not have a pension”
“32% of the male population and 42% of the female population are not sure how much pension they have”
Are you in these statistics? Are you unsure of when to retire? Do you have enough savings?
The need for professional advice is now more important than ever. There are options at retirement to suit all circumstances, but careful consideration is still needed when deciding the best route to take. Each option is worthy of deliberation and we will discuss the benefits of each before making a recommendation.
Contact the FPC today in confidence to speak to one of our financial planning experts who can provide peace of mind and answers to your questions surrounding your retirement.
You never know, retirement could be closer than you expect.
Building Your Retirement Pot
Retirement can seem a lifetime away especially when you’re young, however the sooner savings are started the better retirement will be. The more you can save, and the longer you can do so, the bigger your pot is likely to be. Regular monthly premiums and lump sums can be contributed, and even your employer can pay in. Best of all though is the tax relief given, to encourage you do so.
The Government gives tax relief of at least 20% on all premiums, (more if you are a higher rate tax payer) and you can even get tax relief on annual premiums up to £3,600 a year if you don’t work and pay no tax at all. So someone contributing £100 to a private pension only actually pays £80 and the other £20 is paid directly into the pension in the form of tax relief; nothing else has to be done.
Additional tax advantages also allow the fund to grow free of Capital Gains Tax and Income Tax so a pension is a really efficient place to save.
How Is My Money Invested?
Many things will determine this and your adviser will discuss with you everything that should be considered. This would include your own attitude to risk, your capacity for loss and the probable term. However other factors that might influence where your pension fund is invested could include the plans you have for the fund when you retire; any other pensions you hold; and what other savings and investments you have in place.
Most pension plans provide a variety of investment options and we as advisers take great care to make sure you fully understand the investment risks involved. As you get closer to your retirement age, you may want to reduce the risk that you take with your pension investment, especially if your aim is to buy an annuity. A sudden downturn in the market may affect your pension fund and reduce its value, so in the time approaching retirement it is important to review your pension and circumstances regularly with your adviser.
I have a number of pensions, is that OK?
Yes it is, but it may not be the best thing for you. Many people have more than one pension, and if you have changed jobs frequently you may have several. All these pensions will have different charges, different investments and possibly different retirement dates. We can advise you on each one, show you where your money is invested, and discuss this with you.
Often it is better to consolidate these pensions, perhaps into one contract. This could save you money, simplify your planning (only one statement) and make managing your pension investment a lot more…well… manageable.