Pension and Retirement Planning
Typically, we start working at 18 and plan for retirement at about age 55 - that means our retirement may last 37 years, as long as our working lives!
How much money do I need to retire?
One of the most common questions we are asked is ‘How much money do I need to retire comfortably?’ That isn’t always an easy question to answer. The average life expectancy now takes people into their 80s (according to ONS), and many people will live into their 90s.
Most people would like to maintain their lifestyle in retirement or take that around-the-world cruise, meaning careful planning is required. To achieve this many now envisage having to continue working for longer to make sure they have enough money but in reality, planning sooner can also help people retire earlier.
During retirement, assets can decline as they are used for income. The risks of poor investment returns early in retirement, lack of efficient tax planning, poor cost management and budgeting can rapidly deplete those assets, causing anxiety. bdhSterling can help with all these ensuring your money lasts longer.
The new pension freedoms available have created more options as to how to access pension savings and should also be managed carefully to avoid running out of money. The more generous Defined Benefit Pension Schemes that provide a pension for life can now also be taken as lump sums or transferred out of the Scheme, however, that is not always the best option given the valuable guarantees these typically provide, so careful consideration is needed.
Gaining clarity and confidence in your retirement plan now and into the future.
Retirement poses many questions about your financial arrangements and bdhSterling will work with you to help determine how much is needed to support your desired lifestyle. By understanding your overall circumstances such as income and expenditure, existing assets, attitude to risk, our independent financial advisors are able to create projections to better identify your income requirements.
As holistic planners, bdhSterling can develop your financial plan to include not only pensions but investments, protection, and inheritance tax planning to help achieve your goals. There are numerous ways to generate a retirement income, including State Pensions, so understanding the trade-offs and choosing options that suits you best is something we can advise on.
At bdhSterling we believe your financial plan is an ongoing process where your needs are re-assessed at our annual reviews, and changes made to your financial plan accordingly. You may also want to leave a legacy to your family, and we can help you structure your retirement assets to maximise what is passed to the next generation in a tax efficient manner. Lastly, none of us know for sure how our health will be, if we will be widowed or if we will need long term care in our later years. This too can also be managed and incorporated within your financial plan with a careful choice of protections such as Critical illness or Life insurance.
We are with you in the build up to and throughout your retirement, supporting you and your plan.
bdhSterling has specialised in the pension and retirement area for many years. As specialists in pension transfers, we are often employed by other financial advising companies to provide this expertise to their clients. We have consulted with and are regularly health checked by the Financial Conduct Authority ensuring our advice is high quality and client focused. Our independent financial advisors have the tools to ‘model’ your retirement and create different scenarios to help shape your financial plan. We have investment options to suit your attitude to risk to provide asset growth and to generate your retirement income with maximum tax efficiency. Our international experience in overseas pensions means we can also effectively manage your plan even if you have assets in the UK and Australia as we are licenced in both countries to provide independent financial advice for retirement.
To find out how we can help you plan your retirement please contact one of our independent financial advisors on 01372 724249 or complete an enquiry form on our website.