RETIREMENT PLANNING

Retirement planning is not based on finances alone.  It encompasses your values, your purpose and the lifestyle you want to achieve.

So many of us put off retirement planning to focus on our more short-term desires.  Working with clients, I hope to show the importance of a bigger picture financial plan which will include your short, medium and long term goals.  Small changes now can make a big difference in later life.


My role is not to tell you to save every penny and put your life on hold, but to encourage a balance between your current and future lifestyle, whilst understanding how decisions you make now will impact your longer term goals.



Retirement planning is not always focused on pensions.  Often it's tax efficient to use other assets and savings vehicles to provide you with the income you need at different stages in your life.  This all forms part of your bespoke plan.


 

General Questions

Below are some commonly asked questions:

  • What is retirement planning?

    Retirement can mean something different to everyone.  Whether it's stopping work altogether, or reducing your hours and phasing into retirement,  retirement planning helps you to understand what you want your future to look like, when you will do it and how you get there.


    Often people think that their pension (and state pension) is there only retirement plan, however, this is often not the case.  In most cases it's beneficial to use other assets alongside your pension for tax efficiency and flexibility.


    Commonly it's believed that in financial services we base retirement plans on finances alone.  I feel it's important to understand your personal values and what makes you happy.  With these in mind, I can help you to achieve the lifestyle you want.

  • When do I need a retirement plan?

    The earlier you start saving, the better.  This gives your money more time to grow and to benefit from compounding interest.


    It's easy to push retirement savings back and prioritise the 'here and now'.  Making small steps early on can make a big difference in later life.


    That being said, it's never too late to review your financial situation and ensure you're making the most of your money.

  • What are the benefits of pensions?

    The major benefit of pensions is tax efficiency.


    Contributions into pension schemes receive tax relief from the government, which is added to the value of your pension fund.


    When you reach retirement, you can take up to 25% of your fund tax-free.


    Most pensions fall outside of your estate for inheritance tax purposes.  This can save a hefty 40% inheritance tax charge.


    In the event of your death, the full value of your personal pensions can be passed to any beneficiaries of your choice.  



  • Can I afford to retire early?

    The first step is to work out the income you need in retirement.  Once we know this, we can work out how much you need to save, based on the number of years you have until you retire.  This is why the earlier you start, the easier it is to afford early retirement.


    More often than not, retirement income can be made up of various assets and not just a pension.  The benefit of a full financial plan is to take everything into account to provide you with the best lifestyle possible.

  • How much state pension will I get?

    The amount you will receive from your state pension will depend on the number of years you have been paying NI contributions. 


    If you have paid the full 35 years of contributions, you will receive £185.15 per week, as at January 2023.


    For anyone who has gaps in their contribution record, you may have the option to buy additional years.  An adviser can look at whether this would be beneficial.


    Often clients wish to retire before the state pension age.  This is where careful planning can ensure you can cover the gap in income before state pension kicks in.

  • Why use a financial planner?

    A good financial planner can add value in many ways.  


    - Ensuring you maximise your tax relief, wherever possible

    - Advising on a suitable investment portfolio within your pension and within your agreed risk level

    - Helping with the complex world of pensions and the many options available in respect of providers, implementation, how to take your pension income and current legislation

    - The ongoing management of the investments and level of contributions, ensuring you stay on track to meet your goals

    - Understanding that the pension is part of a wider financial plan and offering value in other areas