Financial planning for retirement

As you approach retirement, securing a reliable income becomes crucial. While the government offers a state pension, it typically covers only essential living expenses. Therefore, it is wise to proactively plan for your retirement to ensure a comfortable future.

Make contributions to your pension scheme from the beginning until retirement, with possible contributions from your employer and/or the government. Starting early is crucial.

Most schemes restrict withdrawals until age 55, except for exceptional circumstances like ill health. At that point, you can take a cash lump sum and receive the rest as a pension income.

Plan ahead to stretch your pension or ensure a reliable lifelong income through options like annuities or income drawdown.

We offer free consultations for retirement planning advice, whether you’re planning or already retired.

We provide pensions advice for all stages leading up to your retirement.

In April 2006, the government implemented significant changes to pension legislation, often referred to as “Pensions Simplification.” Additional legislation regarding annual allowance, lifetime allowances, carry forward, and drawdown was introduced in 2011. For the most recent rates, please refer to our Tax Rate Card 2023/24.

In April 2015, new pension legislation was enacted, granting individuals with defined contribution (DC) pension plans more options than ever before.

If you have a DC pension plan, when you reach 55 you will have a variety of options:

• You can leave your pension plan untouched.
• You can purchase an annuity.
• You can take an adjustable income (flexi access drawdown).
• You can take your cash in installments (uncrystallised funds pension lump sum).
• You can take your entire pension pot in one lump sum.

People often struggle with understanding their available options and may make choices that are not ideal for their situation. This field has become increasingly intricate, highlighting the need for specialised advice and guidance.

Contact us to arrange a free initial consultation or find out more about the various types of pensions available:

• Company and occupational pensions
• Annuities
• Income drawdown
• Personal pensions
• Stakeholder pensions

As State Pension Provision undergoes significant changes and the population ages, it’s becoming increasingly common for individuals to take charge of their own retirement plans. It’s important not to overlook the attractive tax benefits associated with pension contributions.

A review of existing arrangements will give you the peace of mind that you have invested in the most cost-efficient pension plan with the appropriate investment choices available to fit with your personal attitude towards risk and reward.

It will also determine if your current plans and funding levels are adequate to sustain your desired lifestyle.

Tailored pensions advice can then be provided to address any anticipated shortfalls within your budget.

In the past, retirement income was typically secured through annuities, which ensured a fixed income throughout retirement. Nowadays, there are various alternatives, including capped and flexible drawdown options.