Retirement is a very long-term plan and your pension is one part of your total asset wealth, so you need to look at all of your assets, including ISA’s, savings and other investments, and look to see how your pension fits in.
Other factors include your health, your preferred options on lump sums and levels of income, and the date you wish to retire. The pension is part of the puzzle and, in general, a Financial Adviser is best suited to look at the whole of the market and the available options, based on individual needs.
Retirement is a really important issue and each individual needs to have an idea of what retirement means for them. What age they want to retire, what level of income can be expected. Enjoying your retirement is key, so some planning needs to take place. As a nation we are healthier, so we can expect to live longer and potentially take more holidays, but we may also need to fund long-term care costs in the future. A Financial Adviser can help plan towards these expectations and keep them reviewed.
That’s the million dollar question. In reality, you need to start with what you need and when you need it. This is where a Financial Adviser can help and you build up a level of trust. They can put together a plan looking at overall wealth, based on what you wish to achieve. But also any plans need to be reviewed as circumstances can change and there may need to be a Plan B or Plan C. Tax benefits and shelters need to be utilised, as well as investment reviews, monitoring market changes and changes in legislation. Also, health can change, so being able to adapt is important and reviews are vital.
It depends on how simple an individual’s overall wealth is. For someone with little savings whose main income is from a state pension, a simple solution might be the best solution and it might be something they are able to do themselves. It is difficult for the majority of people to do this as, whilst taking into account the tax treatment of assets, the investment choices available and the option of leaving a legacy behind, it starts to get very complicated to try to do it yourself, and there is the risk of making a wrong decision.
Exactly. You could end up with the wrong outcome and that could impact financially on you and your family, your lifestyle in retirement, and any potential legacy in the future. I believe that seeking financial advice adds value if done in the right way with the right financial adviser.