PRIORITISING SHORT-TERM NEEDS AS OPPOSED TO LONG-TERM GOALS
Recent years have brought tremendous change around the globe, change that affects us all. People are trying to navigate this shifting landscape, but it’s not easy.
Monthly Archives: December 2013
Is your nest egg cracked?
MAKING SUFFICIENT FINANCIAL PREPARATIONS FOR THE FUTURE
Retirement savings have plummeted among those aged 55-64 over the past year as the cost of living continues to rise, according to Aviva’s latest Real Retirement Report.
Will you enjoy your retirement?
HOW TO IMPROVE YOUR GOLDEN YEARS NO MATTER WHAT YOUR CURRENT STAGE OF LIFE
Retirement may seem a long way off for you at the moment but that doesn’t mean you should forget about it. Consider our tips, which could help you increase your retirement income – no matter what your current stage of life – and pursue the retirement you envisage.
What to consider if you are approaching your retirement
MAKE SURE YOU HAVE ENOUGH INCOME TO PROVIDE FOR YOUR NEEDS IN THE FUTURE
Sooner or later we will retire, and the decisions we make today are the ones that will determine the standard of living we will enjoy in the future. If you are approaching your retirement there are some very important choices you need to make that will determine how much income you live on once retired.
Pension consolidation
BRINGING YOUR PENSIONS UNDER ONE ROOF
Most people, during their career, accumulate a number of different pension plans. Keeping your pension savings in a number of different plans may result in lost investment opportunities and unnecessary exposure to risk.
Self-Invested Personal Pensions
TAKING MORE CONTROL OVER YOUR PENSION FUND INVESTMENT DECISIONS
If appropriate to your particular situation, a Self-Invested Personal Pension (SIPP) could be another option to consider if you require the flexibility to choose where your pension money is invested. SIPPs are now also open to people of lower incomes – not just those with commercial property.
Workplace pensions
MONEY IS USED TO PAY YOU AN
INCOME FOR THE REST OF YOUR LIFE
A workplace pension is a way of saving for your retirement that’s arranged by your employer. Some workplace pensions are called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions.
Occupational workplace pensions
‘SO WHAT DO I DO WITH MY MONEY?’
There are two main types of occupational workplace pension schemes:
Defined-contribution pension schemes
A defined-contribution (DC) or money-purchase pension scheme is one that invests the money you pay into it, together with any employer’s contribution, and gives you an accumulated sum on retirement – with which you can secure a pension income, either by buying an annuity or using income drawdown.
Minimising potential taxes and duties on your death
IMMEDIATE ACCESS TO YOUR PENSION FUNDS, ALLOWING YOU TO TAKE OUT WHAT YOU WANT, WHEN YOU WANT IT
As your wealth grows, it is inevitable that your estate becomes more complex. Money saved via a pension can be passed on to a loved one, usually outside their estate and free of any death tax, provided the pension fund has not been touched and they die before age 75. People fortunate enough not to need immediate access to their personal pension may therefore decide not to touch those savings for as long as possible.
Income drawdown
WHEN YOU’RE NOT READY TO CONVERT YOUR PENSION FUND INTO RETIREMENT INCOME
If you decide that you’re not ready to convert your pension fund into retirement income by buying a lifetime annuity, but you do need funds, you have a few options. These are often known as ‘income drawdown options’.