Retirement Advice - Cut Through the Jargon
Retirement should be easy, right? But how do you cut through the gobbledegook? Do you actually need retirement advice? Phased Drawdown, Final Salary, Flexi Access Drawdown, Annuity Capped Drawdown, Guaranteed Annuity Rates, Pension Commencement Lump Sum, Tax Free Cash, Fixed Term Annuity: enough jargon to pickle anyone’s brain.
Retirement isn’t what it used to be. In times gone by people generally reached retirement age, took their company pension along with the carriage clock/pen/watch (delete as appropriate) and simply gave up work.
Today, however, things aren’t quite so black and white.
Less and less people have the gold plated defined benefit pension (backed by the former employer) and increasingly have money purchase schemes (your money, your risk). This means that choices have to be made and options considered carefully in the run up to and at retirement. Even if you do have a Defined Benefit pension it is still worth considering your options – Take it early? Take more tax free cash? Transfer out?
The sheer volume of technical terminology only highlights the vast multitude of options available to today’s retirees. I have 14 years’ worth of pension experience and this has given me an excellent insight into the various retirement options, their benefits and their drawbacks.
As a Chartered Financial Planner I will firstly seek to understand what is important to you, your needs and objectives so we can build a plan to help you make the most of your retirement taking into account your requirements, for example:
Flexibility - The ability to adjust your income as and when necessary, take lump sums or cease benefits all together.
Tax - Structure your plan to minimise the tax you pay (legally – I’m not talking Panama and Cayman Islands), there is no point in saving only to lose more to the taxman than is absolutely necessary, whether it be income tax or inheritance tax.
Legacy - Organise your plan such that you maximise the death benefit options available to those you hold dear.
Guarantees - Market risk isn’t for everyone, if required we can build guaranteed income into all or part of your retirement plan.