Pension 2016  – Time for Action

Five Facts and Six questions to ask yourself about your retirement! The new pension freedom legislation has been in place a year. The auto enrolment process is ongoing.
Is the message from the government to individuals being received and understood? At Bristol & West we are not sure it is, consider the points below then ask yourself the follow up questions.

Questions about Pension:

  1. Have you made your retirement plan. ( what you want to do in retirement etc.)
  2. How long will you live? (impossible to answer so any plan must take this into account)
  3. Do you believe that putting 3 to 8% of your income into any old pension will fund your retirement for 18 years?
  4. Is your plan flexible how much will your spouse receive if you die?
  5. When did you last check what you will receive in Basic state pension?
  6. Are you having annual reviews of your retirement plan, pension, investments and Trusts by a diploma qualified adviser?

Pension Questions Answered:

  1. 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 our living longer!
  2. Living to long is a real risk! (outlasting your pension provision especially husband and wife)
  3. On Average you will have 40 years to fund an average retirement lasting 18 years.
  4. Most women due to career breaks do not fund as much as men.
  5. Only 13% may qualify for new state pension full flat rate of £155.65 per week. According to MP’s last week.

Experience tells us that very few people will be able to answer affirmatively 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 and 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 however, pensions do remain an important part of tax-efficient financial and retirement planning, with proper advice being sought on the choices available. If you wish to take advantage of this short window of opportunity between now and April, please Contact us and will be able to offer advice.