Retirement Planning

 

Planning For Tomorrow, Today

The big question is, how much do you need to live a comfortable retirement? As experienced Retirement Planning Advisers, our guidance is designed to find your right way forward.

 

 

Approaching Retirement

Suddenly, the retirement years are around the corner and soon you will be living off your pension, but what exactly does this mean? Choosing what to do with your pension fund requires careful thought however, for many the decision is easy - replace your employment income with your pension income.  Whether you have got £45,000 or £1,500,000 in your pension fund, this is likely to be the biggest cash lump sum you have seen. Life expectancy is on the increase so you may require your pension fund to support you through 30+ years.

 

 

Think Before Saving

Mounting pressure on people to build a nest egg for retirement can sometimes force people down the wrong path. It is important you develop a Total Savings Strategy that will reduce the risk of losing money you have set aside but equally will maximise growth.

Pensions work like an investment wrapper, so are similar to an ISA. The difference is in the limits and benefits. Like any investment, you will choose which funds to invest your pension pot in. Higher returns and high risks are likely to go hand in hand, however these are long-term plans, so your pension performance should smooth out fluctuations in investments. 

The downside to investing purely through a pension fund is, it can restrict how and when you can access your money.

 

 

The Value of Retirement Planning

We all know it’s important to plan for retirement, but many of us are still not planning well, or early enough.

Despite all the media headlines and Government initiatives, many of us still have a ‘tomorrow will do’ attitude. This is worrying for one simple reason – we are going to live longer than most of us think.

Those approaching retirement today have many more opportunities and challenges to face than their parents ever did. There are also many more ways to fund retirement, adding to the confusion about how to best prepare for all your needs.

Live long

In 1900, life expectancy at birth in the UK was only 46 years for men and 53 years for women. Just over a century later life expectancy at birth has increased by around 30 years, reaching 79.0 years for men and 82.9 years for women (source: ONS - National life tables – life expectancy in the UK: 2018 to 2020).

Clearly, life expectancy is increasing, and the higher likelihood of us living longer into retirement presents an important question - will we have enough money to enjoy the lifestyle we desire and to last us, once we have stopped work?

...and prosper?

Some of us are planning our pensions. But few of us plan for ‘late retirement’. This is a period from our mid-70s and onwards, when our expenses can rise faster than our pension income can keep up with.

This can happen for various reasons. It could be because we need more help around the home or even that we require nursing care. Then there are unexpected expenses like replacing the roof, health care, or financial help for our families.

But these days, it’s just as likely to be because the older generation is leading a more active life through travel, work or leisure.

And don’t forget our old enemy – inflation. It continually eats away at the value of our money over time.

Forward planning

This problem has been at the root of much of the recent innovation in the retirement market. Getting sound financial advice throughout the different stages of retirement will help identify which products can help you achieve the income you need.

Although it may seem a long way off, making robust financial plans now for late retirement will give you the peace of mind to enjoy your early retirement years - safe in the knowledge that you will be able to live the lifestyle you desire further down the line.

 

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Related Articles

| How Personal Pensions work | Automatic Enrolment for Employees | The Value of Retirement Planning | Automatic Enrolment for Employers | Income Drawdown | Pensions & Divorce | Your Retirement Options and Pensions Freedom | What is a Personal Pension? |

This article (The Value of Retirement Planning) is intended to provide a general appreciation of the topic and it is not advice.

For more information please contact Douglas Steers & Company Ltd on 0345 5000 909 or email advice@douglassteers.co.uk and we will be happy to assist you.

Article expiry: 06 Apr 2025

The Value of Retirement Planning

We all know it’s important to plan for retirement, but many of us are still not planning well, or early enough.

Despite all the media headlines and Government initiatives, many of us still have a ‘tomorrow will do’ attitude. This is worrying for one simple reason – we are going to live longer than most of us think.

Those approaching retirement today have many more opportunities and challenges to face than their parents ever did. There are also many more ways to fund retirement, adding to the confusion about how to best prepare for all your needs.

Live long

In 1900, life expectancy at birth in the UK was only 46 years for men and 53 years for women. Just over a century later life expectancy at birth has increased by around 30 years, reaching 79.0 years for men and 82.9 years for women (source: ONS - National life tables – life expectancy in the UK: 2018 to 2020).

Clearly, life expectancy is increasing, and the higher likelihood of us living longer into retirement presents an important question - will we have enough money to enjoy the lifestyle we desire and to last us, once we have stopped work?

...and prosper?

Some of us are planning our pensions. But few of us plan for ‘late retirement’. This is a period from our mid-70s and onwards, when our expenses can rise faster than our pension income can keep up with.

This can happen for various reasons. It could be because we need more help around the home or even that we require nursing care. Then there are unexpected expenses like replacing the roof, health care, or financial help for our families.

But these days, it’s just as likely to be because the older generation is leading a more active life through travel, work or leisure.

And don’t forget our old enemy – inflation. It continually eats away at the value of our money over time.

Forward planning

This problem has been at the root of much of the recent innovation in the retirement market. Getting sound financial advice throughout the different stages of retirement will help identify which products can help you achieve the income you need.

Although it may seem a long way off, making robust financial plans now for late retirement will give you the peace of mind to enjoy your early retirement years - safe in the knowledge that you will be able to live the lifestyle you desire further down the line.

 

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Related Articles

| How Personal Pensions work | Automatic Enrolment for Employees | The Value of Retirement Planning | Automatic Enrolment for Employers | Income Drawdown | Pensions & Divorce | Your Retirement Options and Pensions Freedom | What is a Personal Pension? |

This article (The Value of Retirement Planning) is intended to provide a general appreciation of the topic and it is not advice.

For more information please contact Douglas Steers & Company Ltd on 0345 5000 909 or email advice@douglassteers.co.uk and we will be happy to assist you.

Article expiry: 06 Apr 2025

The Value of Retirement Planning

We all know it’s important to plan for retirement, but many of us are still not planning well, or early enough.

Despite all the media headlines and Government initiatives, many of us still have a ‘tomorrow will do’ attitude. This is worrying for one simple reason – we are going to live longer than most of us think.

Those approaching retirement today have many more opportunities and challenges to face than their parents ever did. There are also many more ways to fund retirement, adding to the confusion about how to best prepare for all your needs.

Live long

In 1900, life expectancy at birth in the UK was only 46 years for men and 53 years for women. Just over a century later life expectancy at birth has increased by around 30 years, reaching 79.0 years for men and 82.9 years for women (source: ONS - National life tables – life expectancy in the UK: 2018 to 2020).

Clearly, life expectancy is increasing, and the higher likelihood of us living longer into retirement presents an important question - will we have enough money to enjoy the lifestyle we desire and to last us, once we have stopped work?

...and prosper?

Some of us are planning our pensions. But few of us plan for ‘late retirement’. This is a period from our mid-70s and onwards, when our expenses can rise faster than our pension income can keep up with.

This can happen for various reasons. It could be because we need more help around the home or even that we require nursing care. Then there are unexpected expenses like replacing the roof, health care, or financial help for our families.

But these days, it’s just as likely to be because the older generation is leading a more active life through travel, work or leisure.

And don’t forget our old enemy – inflation. It continually eats away at the value of our money over time.

Forward planning

This problem has been at the root of much of the recent innovation in the retirement market. Getting sound financial advice throughout the different stages of retirement will help identify which products can help you achieve the income you need.

Although it may seem a long way off, making robust financial plans now for late retirement will give you the peace of mind to enjoy your early retirement years - safe in the knowledge that you will be able to live the lifestyle you desire further down the line.

 

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Related Articles

| How Personal Pensions work | Automatic Enrolment for Employees | The Value of Retirement Planning | Automatic Enrolment for Employers | Income Drawdown | Pensions & Divorce | Your Retirement Options and Pensions Freedom | What is a Personal Pension? |

This article (The Value of Retirement Planning) is intended to provide a general appreciation of the topic and it is not advice.

For more information please contact Douglas Steers & Company Ltd on 0345 5000 909 or email advice@douglassteers.co.uk and we will be happy to assist you.

Article expiry: 06 Apr 2025

 

 

Know Your Retirement Options

As Retirement Planning Specialists, we can help you assess whether your pension contributions or funds will be affected by these limits and advise you on the pension options available to you.

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