Whatever you want from your retirement, you’ll want to enjoy it free from financial worries. Even if it’s still some years away, it’s never too early to start planning- in fact, the sooner the better !
• Firstly, how you create a retirement fund while you’re working (usually through a pension plan);
• Secondly, how you spend your fund when you retire.
If you’re still working, it’s important to consider taking out a pension. Many employers offer company pension schemes, and if they don’t already they will need to offer these by law in the next few years. Alternatively you can set up your own individual pension plan, which can offer flexibility and some tax benefits. We can help you consider your choices and make the right decision. Then we’ll make sure your money works hard… so you can relax.
In the years before you retire we can review how your pension is performing to make sure it’s on track. That’s also the time to start thinking about how you’ll use your pension to fund your retirement – and you have choices! You could:
• use your pension fund to buy an annuity – a plan to give you a regular income stream over a number of years;
• draw down a lump sum to start your retirement in style;
• phase your retirement – perhaps by working part-time for a while and only drawing some of your pension;
• take some money directly from your pension fund (called income withdrawal, or drawdown);
• consider higher-risk options, such as unsecured pensions and investment-linked annuities.
Some decisions you make about how you use your pension fund cannot be reversed, and with some options there are restrictions and conditions – so it’s important you make your choices carefully. Our expert advisers can guide you, ensuring you understand all the options, benefits and risks.
The costs of long-term residential or nursing care can be daunting – as much as £36,000 per year. With our particular expertise in long-term care funding we can help make the right care affordable, for as long as it’s needed – giving peace of mind to individuals and families alike.
In the past, many people who worked for private firms built up a company pension based on how long they had worked for the firm and how much they earned. The amount of pension they would get was guaranteed by the rules of the pension scheme, and so they were known as defined benefit or DB pensions. These defined benefit pensions have a number of advantages.
• Your pension lasts as long as you do, so you don’t run out of money.
• There is something for a surviving spouse after you die. The details vary from scheme to scheme
• There is some measure of protection against inflation, which helps to maintain the spending power of your pension (varies from scheme to scheme)
• Your pension is unaffected by the ups and downs of the stock market.
Despite all of these advantages, there are some downsides to having a pension of this sort, such as a lack of choice over when and how to take your pension.
So, growing numbers of people are considering whether to exchange their DB pension rights for a cash equivalent.
Five reasons you may wish to transfer out of your DB pension.
and five reasons you may not.
We have joined forces with Money alive to bring you a series of videos on the options available to members of final salary schemes.
If you are interested in this service you can get in touch with Manning & Company via our online enquiry form. Please click below to get in touch.