Financial planning for retirement isn’t
simply about having a healthy pension pot.
Why make plans for after you’ve retired?
Financial planning for retirement isn’t simply about having a healthy pension pot. Once you reach retirement, you will need to access your pension benefits in the most tax efficient way to maintain a comfortable level of income. With careful planning you can achieve the lifestyle you desire.
Where to start with retirement planning
When it comes to life after retirement, you probably have lots of questions. We know that making choices and decisions that affect your future can be daunting. It’s our job to make things simple and help you make the right decisions for you and your family.
Post-retirement planning enables you to reorganise your assets so that you can achieve the returns you need to support the lifestyle you want.
For most clients we’ll start by looking at your pension fund(s). We’ll look at your individual circumstances and discuss all the options available to you. We consider when your state pension benefits are due, how much state pension benefits you’re entitled to, your existing savings and investments, any other sources of income, your assets and liabilities and most importantly of all, the costs of your outgoings.
Illness, care provision, and long-term medical conditions can all put a strain on your personal finances in later life. To achieve complete peace of mind, it’s essential to start planning well in advance.
Post-retirement options
There are many options to consider for later life. Read more on all of these below.
An annuity provides a regular income for life in exchange for a lump sum. Annuity rates vary between companies and our financial advisers will search the open market and find the best deals available.
This is the most common way of withdrawing money from your pension to live on during retirement. You must be aged 55 or over and have a defined contribution pension to access your money in this way. When you decide to take your benefits you keep your pension savings invested and take money out of, or ‘draw down’ from, your pension pot. The value of your pension pot can therefore increase or decrease.
A hybrid pension is a combination of an annuity and a pension withdrawal plan. It allows you to have flexibility with your income but ensures you still have an income to pay your bills throughout your lifetime.
If you or someone in your family require long-term care, we can suggest ways to help you cope with the funding of care home fees or funding for care in your own home. These can include reviewing your pensions and savings; considering tax-efficient immediate care plans, tax matters and estate and wealth planning, and helping you to understand the state benefits available.