There has probably never been a time when there was more chat about pensions and retirement planning. Every day we are talking to clients about their thoughts and worries and helping them create a plan that helps them achieve the most from their financial circumstances.
With this in mind l thought l’d write a series of blogs that highlight the different stages you go through in your financial life from the age of 50. That’s not to say you don’t need financial advice before 50 its just that retirement becomes a real focal point for your plan from 50 onwards.
It is worth noticing that you can access some really useful information about pensions on www.pensionwise.gov.uk. This will help you decide whether or not you can make a decision on your pension yourself or whether it makes sense to take advice from a qualified adviser. If you do make changes to your pension due to a financial adviser then make sure he explains everything to you. If you make changes that turn out to be detrimental to your pension then you might want to get compensation for bad pension advice.
When you think about your journey through to retirement and beyond you will progress through the following six stages:
Some way off – you are likely to be over 50 and have between 10-15 years still to go until your selected retirement date (SRD) or the age when you can draw your state pension. You may well be considering self-invested stock options in order to increase potential capital gain until your SRD utilising tools such as Stocktrades to make informed individual financial decisions.
Nearly there – you have around 5 years until your selected retirement date (SRD) and are much more interested in your retirement options.
Choices & decisions – you are now in the process of retiring. You are less likely than in the past to stop working at a set date. You may go part-time and take some income from your pension pot; stop working completely and draw your income from your pension pot or you might leave your pension pot intact and continue longer through choice or need.
Greater freedom – you are probably fully retired now and receiving your state pensions as well as generating income from your pension savings.
Slowing down – now you may be slowing down for a variety of different reasons from health issues to having done all the things you wanted to do you may be spending more time at home and have less need for income. Think about getting people in to do the odd jobs that need to be done around the house, like installing outdoor home security cameras and the gardening, instead of doing it yourself.
Later life – you may have more health issues; are more dependent on others and may have more need for advice if you are feeling less confident about making decisions about your finances.
Over the next few blogs, I’ll take each one in turn and tell you about some of the thoughts you may be having and the options you can consider.