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PENSIONS

Enjoying the comfort and peace of mind that financial security will bring in your retirement depends on good planning and wise investment

The key consideration for most people when they contemplate retirement is the amount of money they’ll need to enjoy the lifestyle they want. This will depend on health, life expectancy, how much they have already saved and if they plan to work part time to supplement income.

Is it too late to start a new pension?

Life changes when you retire and so does the way you use your money. You may have paid off the mortgage on your home and not working means less travelling expense. However, this could be replaced by the desire to travel and pay for leisure activities. It’s never too late to take the steps to increase retirement savings and, whatever your plans may be, it’s important to think about the lifestyle you want.

What sort of pension should I have?

There’s a variety of pensions available, each with rules governing how much you can pay in and how you are allowed to access your money before or at retirement. Despite the government’s attempt in 2006 to simplify the tax rules relating to pensions, it’s still important to
seek professional advice. The one rule that governs all pensions is that the monies cannot be accessed until you reach the age of 55, except in special cases which your E&G adviser can explain. However, the State Pension, to which everyone is entitled, with the amount subject to NI contributions made during your working life, is not paid until you reach the age of 66.

What are the different types of pensions?

The different types of pension include the following
Personal Pension Plan
Self Invested Personal pension (SIPP)
Flexible Access Pension (Income Drawdown)
Workplace Pension
Small Self Administered Scheme (SSAS)
Defined Contributions Scheme
Defined Benefit Scheme

Your E&G adviser will help you decide which of these is most suitable for you, understand the relevant rules and explain all the details in plain English.

Can I do more to maximise my savings ?

You may already have or be a member of one or more of these pension schemes but now could be a good time to revisit the provisions you have made, whether you are in the process of building your pension pot or getting ready to retire. The goal should be to ensure your likely future income is sufficient for the type of retirement you desire and your E&G adviser will help you plan your next steps.

What steps should I take?

To plan effectively for your retirement you should first consider your goals and priorities, review your existing pensions and other investments, calculate expected future income and how much more you might need to contribute to ensure the income you’ll need to pay for the lifestyle you seek. Your E&G adviser will help you.

Help & Information

If you would like further information on how E&G can help you arrange a private pension, please call us on 020 8396 0486 or email us at cds@eandgfs.com.

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