It is said that retirement is the point in life where you have earned all the money you are going to and now all you have to do is make sure that it does not run out before you do.
Historically for many this was achieved by an employer guaranteeing to fund a pension income for their long standing staff. Nowadays, final salary schemes are no longer the norm and for the vast majority of individuals now retirement is about living off accrued capital, be it monies within pensions, their savings and other investments or from the value of their home. With state pension dates moving later over time, the importance of planning how to make the best use of existing capital has never been higher.
New legislation allows us all to have much greater control in how we establish our retirement income streams. It may be that the regular lifetime income needs just to cover the continuing regular bills whilst in the early years of retirement, individuals wish to establish extra to fund travelling or to further fund a hobby or pastime. Whilst the purchase of guaranteed incomes for life is still an option for many to consider, particularly to cover ongoing bills, the more flexible options that have developed recently do allow retirees to also apply variable scenarios to match their retirement objectives
As a fundamental part of our At Retirement Review our advisers will take into account both short term demands and longer term income needs to create a considered action plan based on your lifestyle hopes and aspirations. We are realists and will not promise what cannot be achieved but more often than not the agreed strategy will allow for many of those objectives to be realised in the most tax efficient manner.
Chartered Financial Planner and a director of Chilvester Financial, Tony Capener is a specialist in pensions and later life matters. If you need confidence in how to effectively to establish your retirement income streams, please call Chilvester on 01672 500600.