Pensions

Retirement Retirement planning - Don't ignore it! You should take control while you still can - have a coherent financial plan.

Saving for your retirement

We believe that saving for your retirement is an ongoing financial process which should be tailored to your circumstances. 

Old restrictive pension rules have been torn up and the key decisions are now back in your hands.  Don't just buy a product!

We have always felt that for so many, the restrictions on access to pension funds (25% tax free cash and the necessity to purchase some form of annuity), had deterred investors from using Personal Pensions as a means to plan for retirement.

Since April 2015 the floodgates have opened, gone will be the need to buy an annuity and gone will be any income limits on pension drawdown.  You will have flexibility to take as much or as little from your pension fund as and when you want it.

The first 25% is still tax free with the balance taxed at your marginal rate, but at least you will be able to make financial decisions which suit your specific circumstances.

The removal of access restrictions, though, brings serious financial responsibilities.  How much do you spend immediately on repayment of debt or improvements in lifestyle or living standards and how much should you keep invested for income in retirement?

For many the world of pensions is shrouded in excess charges and wrapped up in confusing technical jargon.  As a result, many people end up paying little attention to their pensions or retirement planning.

In the past, people didn't really have any motivation to look too closely at the performance of their funds as a pension (if you had one at all) was something away in the future and generally ignored until it was too late to make any meaningful changes.

Warning

As life expectancy is increasing, you should take responsibility for your financial security in retirement now and the sooner you start to save and regularly review those savings the more options for early retirement you will have.  You will also ease your reliance on an already crumbling state scheme.

  1. Review the quality of the pension funds you hold
  2. Take control of the situation: consider combining different pensions into one.
  3. Check whether you are contributing enough to achieve your retirement income goal
  4. Take advice now, call us or drop our adviser an email, we can help.

Proper advice on pensions and annuities has just become even more important, with the need to maintain ongoing tax and investment planning into retirement, in order to maintain a realistic source of income.


Contact us today!

This new found freedom to access such large amounts of cash will bring with it the inevitable increase in new products and pitfalls, if you want some clarity then call us today on 02820762353 for an initial discussion at our expense.  Or drop us an email to eamon@pjmcilroy.co.uk   

P J McIlroy & Son Insurance & Investment are authorised and regulated by the Financial Conduct Authority.