Will the new retirement rule of ‘no rules’ offer people a better financial future?
Following pension reforms, there are now more options for using your private pension pot. Since April 2015, some people over 55 have greater freedom in how they can access their pension pots – the money they’ve built up during their working life.
Consumers lost £130 million by sticking with the same pension provider in 2016
New research finds consumers could be missing out on thousands of pounds in retirement by not shopping around for their pension product. This means their pension pot may not stretch as far as they hope it will, yet a significant proportion of people expect their retirement income to cover much more than just the essentials.
It’s been estimated that 18% of earnings need to be saved each year to achieve an adequate income during retirement, an International Longevity Centre (ILC) report has concluded.
Are you getting tax-efficiencies on the gains you make from the money you invest?
Whatever you’re putting money aside for, there’s likely to be a role for Individual Saving Accounts (or ‘ISAs’). If you’re looking to grow your money over many years – perhaps to fund a dream purchase or help you in retirement – cash might not be the right option, especially when the interest rates on Cash ISAs are near all-time lows.
The gap between women’s and men’s annual average expected retirement incomes in 2017 has grown by £1,000 in the last year, according to new research[1].
Protecting your portfolio from the ups and downs of investing
No particular investment consistently outperforms other investments. One of the most effective ways to manage investment risk is to spread your money across a range of assets that, historically, have tended to perform differently in the same circumstances. This is called ‘diversification’.
Retired households handed over an average of £7,400 each in tax last year – the equivalent of nearly 30% of their annual income, according to analysis of newly released data[1] by Prudential.
Improving your chance of a better retirement income
Every client’s story is different. Each one is unique. We invest significant time to understand your very personal circumstances. We do this for all our clients, and setting your retirement income target is an essential part of this process. The income you receive in retirement will depend upon four factors: how much is contributed, how well your investments perform, when you retire, and how you take your income.
Forecasting the long-term effects of the settlement
The financial ramifications of a divorce can be devastating. The average age of divorce has reached an all-time high at 45 years and 11 months for men and 43 years and six months for women, according to data released from ONS[1].
