Pension the clock is ticking!
Pension the clock is ticking can you answer YES to all nine questions?
If not it is time to take action.
- Have you made a retirement plan?
- Are you following your retirement plan?
- Have you planned for living to long?
- Have you planned for dying to soon?
- Do you believe that putting 3 to 8% of your income into any old pension will fund your retirement for 18 years?
- Is your plan flexible how much will your spouse receive if you die?
- Will your spouse be able to choose capital or income or a mixture of both?
- Have you checked what your Basic state pension will be?
- Are you having annual reviews of your retirement plan, pension, investments and Trusts by a diploma qualified adviser?
How did you score?
The average life expectancy male and female combined in the south west has risen to 82 years old (average in 1970 of 71 years old) according to the Lancet, which means in basic terms people are living longer!
Living to long is a real risk! (outlasting your pension provision especially husband and wife)
On Average you will have 40 years to fund an average retirement lasting 18 years.
Most women due to career breaks do not fund as much as men.
Only 13% may qualify for new state pension full flat rate of £155.65 per week.
Experience tells us that very few people will be able to answer YES to the above questions if you can you are in a small minority. Remember that you are planning for a time when we are all more vulnerable as earning power has reduced if not stopped. We are more susceptible to illness and age related problems.
So some sort of flexibility to our plans will be a necessity. The government age for retirement has and is increasing and will continue to do so. This will leave a lot of people having to work till late 60’s early 70’s and possibly beyond!
Despite all these changes. Pensions remain an important part of tax-efficient financial and retirement planning, with proper advice being sought on the choices available.
Please Contact us and will be able to offer advice.