Avoid A Pension Horror Story This Halloween
October 31st, 2007
We’ve all heard pension horror stories. So to avoid your own nightmare we’ve highlighted some of the pivotal pensions milestones and what you should consider when you reach them, which will hopefully help you sleep more soundly this Halloween.
5 years or more
Get both current and projected values at your chosen retirement age for all of your pension plans. Arrange a review with a retirement planning specialist who can assess the risk profile of your funds, the potential to improve their value, and advise on additional contributions to reduce any potential shortfall. If you have lots of pension pots with different providers, you may want to consider consolidating your funds to benefit from closer control over the next few years.
The sooner you do this, the more you’ll potentially get out of your pensions at retirement so having a specialist review them even as early as fifteen to twenty years before retirement isn’t a bad idea.
5 years or less
You should have a reasonable idea of what your final pension pot is likely to be worth. The size of your pension fund is the main factor governing your options at retirement, so talk them through with a specialist.
Decide how much income flexibility you want in retirement, and how much risk you’re prepared to take with your accumulated pension pot.
1 year or less
Start to do some detailed budgeting, allowing for your regular outgoings and larger ‘one off’ expenses. You should also decide how you want your income structured (e.g. do you only need income for yourself for the rest of your life, or do you want to allow for a spouse’s pension).
Enlist the help of a specialist to shop around for the best annuity rate, or find an alternative arrangement that is suitable for you if you have a substantial fund.
For advice on planning for your retirement, or an earlier review of your pension arrangements, call us on 0800 294 7199, or get in touch online.
When you talk to us you’re tapping into a wealth of knowledge that is hard to beat. Our aim is to keep things clear, simple and transparent. That’s why we were the first Independent Financial Adviser to achieve ‘Gold Standard’ - awarded for the quality and impartiality of our advice.
You’ll be please to know we still have it - currently we are the only Independent Financial Adviser to have met Gold Standard requirements three times.
Read more about Torquil Clark Financial Planning.
Author: Craig Evans
October 31st, 2007
Category: Financial Advice, Pensions.
