Rather than just ask our clients the questions “How much would you need to retire on and at what age”, we prefer to ask our clients how they see their own retirement. It does lead to some colourful answers but allows us to have a much better understanding of what our clients want to achieve.
We believe it is an important step in the planning process to visualise your own retirement. Since April 2006 pension legislation has seen some radical changes, the bulk of which, we believe are extremely positive and, give people a real incentive to save for their futures.
Pensions today, are low charge, flexible and offer superb fund management. As part of our planning process we would seek to use all the available tax relief we can when formulating our clients’ retirement plans. This, coupled with the option of self investing and independent fund selection, puts our clients on the right road to achieving their own goals.
When people think of pensions they tend to think of Final Salary Schemes, Private Pension arrangements and State Pensions, however, income in retirement can take many different forms.
Your income could also include rental payments, dividends from shares, Unit Trusts or ISA’s, deposits, income from Insurance Bonds or even Trusts. As part of the financial planning process it is our job to blend income steams to minimise tax and maximise return.
Unfortunately, due to the lack of trust consumers can sometimes have in the financial services community, many people simply go on line and buy annuity with a pot of money they have spent their entire lives building and often regret not having taken advice.