Do I need a financial advisor for my pension?
As pension advice specialists, we are acutely aware of the complexities of advising and executing what can be long-term pension plans. There are many issues to look at such as affordable contributions, target pension fund, income required in retirement as well as a consideration of non-pension fund assets. Your pension advisor will walk you through the options, the various scenarios, highlighting action to take in the short, medium and longer term. The ever changing regulatory environment is also making it challenging for individuals to self-manage their pension assets. A simple mistake today with pension contributions could prove extremely costly further down the line, but may not emerge for many years to come.
In its simplest form, a pension is a means of saving funds for retirement in a tax efficient manner. This description hides an array of complexities and challenges which require a degree of short, medium and long-term planning. Your pension fund is crucial as it is likely to be a strong element of your income in retirement.
When can I collect my pension?
In order to avert a potential pension crisis, the UK government is gradually increasing the state pension age, currently 66 but set to increase to 68 between 2044 and 2046. There are exceptions for those born before a particular age and this is something to discuss with your pensions advisor. When looking at occupational/personal pensions, the earliest age at which you can access funds is set to rise from 55 to 57. It will depend upon the pension rules for individual plans, and again it is important to take pension advice.
How much do financial advisors charge for pension advice?
The cost of pension advice can vary significantly, depending upon the size of the pension fund and associated complexities. Here at Assured Private Wealth we can incorporate pension advice under our comprehensive wealth management service. Our free consultation allows us to discuss your situation and requirements in more detail, and make you aware of the services we offer and our charging structure. Unlike other pension advice specialists, we don’t take a one size fits all approach, instead looking at individual client scenarios in their own right.
How much do I need to retire?
There is much debate as to what is the optimal figure for a pension fund in order to create a comfortable income stream in retirement. Recent research suggests that a single person requires £33,000 a year to live relatively comfortably, with a couple in the UK looking at £47,500 per annum. However, this could change dramatically as a consequence of inflation and the cost of living. As pension advice specialists, we can help calculate your estimated income requirement per annum and then work backwards to calculate the required pension fund.
How much should I invest in my pension plan?
While there is no definitive figure as to how much you should invest in your pension plan, the reality is that the earlier you start the greater the potential capital appreciation. It may be that you link your pension fund contributions as a percentage of your gross earnings or simply review when you feel comfortable. Due to the impact of compound growth, even making relatively small contributions at an early age can have a significant impact on the value of your pension assets.