Pension Planning for over 50s
Retirement and Investment Solutions tailor their retirement planning advice for the THREE PHASES of pension saving:
Many of our clients have come to us before retirement with an array of different pensions, savings and investments that they have accumulated in their working life.
The aim of these plans is to provide an income in retirement and the more you have in these pots the better your financial security will be.
Retirement and Investment Solutions can tell you what your pot is likely to be and what you can do to improve it.
There are four main factors that affect how much you have:
1. Amount of money going in
2. Time until retirement
3. Investment growth
If you aren’t able to continue adding to the pots here are a few ideas that can help to improve what you have:
- Don’t put all your eggs in one basket – different types of investments and assets will perform better than others at any given time and over any given timescale.
- Be aware of charges – charges are a drag on your pot and you should make sure that you are not paying over the top for charges – it’s no good having a reasonable investment if the charges are so high that they wipe out most of the growth.
- Don’t ignore tax – some investments have significant tax advantages over others so make sure you are making full use of these.
- Review your strategy regularly and take account of changing investment and economic conditions – nothing stays the same forever and what might have seemed ideal 5 years ago may now be losing you money.
So the big day has arrived and you have amassed this huge pot. At this stage it is absolutely critical that you do not rush into decisions and that you get good solid financial advice.
Keep in mind that you and your partner may be relying on this retirement pot and the income from it for 20 or 30 years or even longer.
- Possibly take a tax free cash sum
- Purchase an annuity that will provide you with a guaranteed income for life
- Purchase a fixed term annuity and periodically review your options
- Use the whole of your fund on day one or take benefits from it gradually over a period of time, perhaps years.
Which option is best for you will depend on your circumstances and requirements at the time and, of course, these may change during retirement so you may need ongoing flexibility to change options.
Don’t forget your partner – which option you take up will also have a huge impact on what they will receive in the event of your death.
If there is one important point that Retirement Investment Solutions have learned during their years of advising Retirees is that the need for income in retirement will not be uniform and you will need much more at certain times and much less at other times.
So we help our clients to work out their own pattern based on retirement plans, health and whether they plan to continue working in some capacity.