It seems that the closer we get to retirement, the more frequently the subject of pensions and the size of our pots occupies our thoughts and conversations. At the same time, the issue of money, financial resilience and saving for our future seems to be dominating the media and political agenda like never before for good reason: seismic shifts are impacting how much we save but also how and when we retire. We are living longer, so need larger pots, and as a result many are extending their working lives. Research1 shows that there are now 10.9 million people aged 50+ in employment – more than at any other time in history, with record numbers working part-time.
This suggests retirement is no longer a clean-cut shift in life stage from one to the other for many. Perspectives and patterns are changing. Gone are the days of saving for retirement and buying an annuity as a once and done.
The pension freedoms of 2015 gave us much greater control over how we access our savings and more recently the abolition of the lifetime allowance has changed the landscape further. Individuals understandably want certainty of income but, at the same time, the flexibility to adapt to their changing circumstances. Savings also need to work harder. This is a complex landscape to navigate and demands a team effort. For this reason, we are committed to working with you to shape your ideal retirement and be ‘retirement ready’.
Do you have enough for the journey?
When it comes to our retirement plans, the step away from the stability of a regular income and into the unknown can be daunting. Research commissioned by 7IM2 shows that not having enough for retirement is a leading concern for over half of retirees. This is understandable as planning and saving for retirement requires discipline and hard work – we want to ensure you have enough money to achieve your retirement dreams.
The importance of planning
Many of our clients are working with us to put in place the building blocks of their financial freedom. Financial freedom means having the ability to make life decisions without being worried about their financial impact. You control your wealth instead of being controlled by it.
So, what does ‘retirement ready’ look like?
An effective retirement plan is crucial and will guide your journey. We know that having complete control over your finances requires a disciplined approach and have developed what we call our Five Steps to Financial Freedom.
Throughout our working lives and as we approach retirement, the groundwork has been laid in building savings, but the expertise of a professional financial adviser will ensure your savings work harder while adapting to suit your individual needs.
This first step involves using our Lifetime Wealth Model, which plots all your assets in one place to provide a position of real knowledge from which to make important strategic decisions about financial plans. This can include key life events you may want to prepare for, such as mortgage repayments, travel, second homes or even university fees for loved ones. This information will produce an illustration of cash flow throughout your lifetime, which can be easily updated to reflect changes in lifestyle or circumstance. Most importantly, we create a financial plan to give you the confidence and reassurance to map out your future with a degree of certainty.
The bigger picture and tax optimisation
Retirement planning requires you to step back and look at the bigger picture. A good financial plan will be broader than just pension savings and will take into account all of your assets, including ISAs, property, cash savings and more.
Another key step is utilising our Tax Optimisation Strategy, which will ensure you maximise all the allowances available. Without the right tax strategy in place, savings can be eroded quickly and unnecessarily; the aim is to mitigate your tax burden while maximising overall returns. This includes fully funding your pension, but also using allowances available through ISAs, capital gains, dividends and interest and potential investment into products like offshore bonds. For those with a greater appetite for risk, there are tax advantages available through vehicles like Venture Capital Trusts and Enterprise Investment Schemes. However, such companies are typically at an early stage of development and therefore are considered high-risk investments.
The bigger picture also means thinking about your objectives. Our investment independence allows our advisers to blend the best investment options, and provide a tailored portfolio to underpin and align with your needs. Ultimately, our goal is to ensure you are financially independent so that you can retire on your terms.
We’re to help
There are many things to think about when planning your retirement. As a starting point, our advisers will ask you the key question ‘What does retirement look like for you?’, Then, to help you get ‘retirement ready’, we will work with you to identify what needs to be in place for you to successfully retire. Our goal is to ensure you feel confident and well-prepared, knowing you have the resources in place to retire comfortably. Together, as a team, we will help you achieve your dreams of financial independence with a comprehensive plan setting out the most effective way to use your assets to reach your goals. This will give you the confidence to know you have the freedom and flexibility to enjoy the retirement of your choosing. Our goal is to ensure you feel confident and well-prepared, knowing you have the resources in place to retire comfortably.
If you would like to discuss your retirement planning in more detail, we would be delighted to help. Please get in touch to discuss your plans for your financial freedom with one of our experienced financial planners by telephone on 020 7444 4030 or by email..
Sources:
1 Rest Less digital community analysis of ONS data https://restless.co.uk/press/uk-employment-levels-amongst-the-over-50s-at-an-all-time-highand-growing-faster-than-all-other-age-groups/
2 https://www.7im.co.uk/financial-adviser/retirement/the-7im-retirement-study
The information and/or any reference to specific instruments contained in this article does not constitute an investment recommendation or tax advice. The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information. This document reflects our understanding of current legislation. Past performance is no guide to future returns.