Pension Planning
With so much to think about, planning for your retirement can be a confusing time. Understanding the level of income you’ll need, the right way to achieve it and how to make it last is not easy. A financial adviser can help you find answers to the most common questions and challenges you may face in retirement and create a financial plan to help maximise your retirement income.
Here are seven of the most common questions I can help you to answer.
1
When can I afford to retire?
I can help you understand your current pensions and investments and how they can be used in the most efficient way to generate an income for you.
2
How much income will I need in retirement?
How much income you need is not only dependant on your essential expenditure but also what kind of retirement you are hoping for. Whatever you want for your retirement, whether this includes travel, home improvements or spending more time doing the things you love, your adviser will be able to pull this together into a financial plan to help you arrive at a sustainable figure.
3
What assets should I draw down first?
Drawing from your assets to provide retirement income in a tax efficient way can be complex, a financial adviser will help you understand the different assets that you hold and the different ways in which you can draw them.
4
How should I invest?
Financial planning starts with you and your needs, objectives and ambitions. I will help you understand what you want from your money and when you may want it. I will then discuss your attitude to financial risk and capacity for financial loss in order to determine how much risk you can stomach and what that might mean in different market conditions. Only then I will be able to talk about the different types of investments that may meet your objectives.
5
What additional risks will I face?
Even if you are an experienced investor once you enter the decumulation phase (the process of converting pension savings to retirement income) you will be faced with additional risks.
The main risks:
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Longevity - how long you are likely to live and making sure you don’t run out of money
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Inflation - ensuring your income retains its buying power
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Market fluctuations – minimising the impact on your pension savings.
We can help you to both understand and mitigate these risks.
6
How often should I review my plans?
It’s important to review your financial plans regularly, as both your personal circumstances and the economic environment may change over time. While we recommend reviewing your plans at least annually to ensure they remain aligned with your goals, not everyone will require ongoing servicing.
Please note that ongoing servicing comes at an additional cost.
7
What are my other financial planning needs?
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I will also be able to identify and discuss with you any other financial needs that you may have such as inheritance tax planning.
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The value of investments and pensions and the income they produce can go down as well as up and you may not get back the full amount that you originally invested.
The Financial Conduct Authority does not regulate Inheritance Tax Planning.
