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Retirement Finances & Pensions

Financial Planning for Retirement Years

Do you have plans for your retirement?

Are you giving your finances the best chance to deliver for ALL your retirement years?

Do you intend to ‘spend your capital’ or live off ‘investment income’?

What are you hoping to leave behind for your children, loved ones and cherished causes?

Have you considered the need for later life care?

These are just some of the many financial planning questions to ask ourselves as we plan for, take, and live our retirement years.

Phare Financial Services advisers can help you work through these questions and ensure that you are in the best position possible.

For many, this will involve using tax-efficient vehicles such as pensions and ISAs. These are simply a pot of money or investments which are designed to grow free of UK tax and provide an income when you are no longer working.

Pension contributions in particular qualify for tax relief at your highest rate of income tax, unless your individual circumstances mean that it is subject to restrictions.

You, your employer, and the government can all pay into your pension. You can also pay into someone else’s pension pot, such as your spouse or children’s.

Many of us will have pensions, but there are also other asset classes that could deliver for your retirement, such as residential property, or ownership of a private company.

Whatever your chosen vehicle or vehicles to support your retirement financially, it is vital to make the most of them, including being as tax efficient as possible. Something that expert advice can help with.

If you need help with your retirement planning or pension management, then please call 020 3701 2222 or email with your enquiry.

“When can I draw my pension income?”

From age 55 (57 from 2028), you have the option to take money out of your pension. There is usually no deadline, but most people start accessing their pension when they cut down their working hours or stop working altogether.

“How much will I get when I retire?”

The size of your retirement savings pot will depend on many things, including:

  • How much has been paid in
  • How well your savings pot has performed
  • How long your money has been invested
  • How you have chosen to access your savings
  • How much has been deducted in charges

“How can I draw my pension income?”

The decisions you make on how to draw your pension income can have lasting repercussions, and with increasing life expectancy it is crucial that you consider all the options available to you.

You may have heard the phrase ‘pension freedoms’, which simply means new legislation allowing greater flexibility in how you can draw your pension. The wide range of options available for having an income stream include taking it all as a lump sum or purchasing various types of annuity or drawdown.

Pensions can be complex. Be it setting up your first pension, reviewing your existing plan, or approaching retirement, an adviser can make sure you fully understand your options to keep your money working hard for you while you get on with living your life.

Please call 020 3701 2222 or email for more information.

Whilst drawing your pension as a lump sum may sound attractive, it may not always be the best course of action. Unless your pension pot is very small you could lose much of it to income tax if you draw it all in one year. It could also be challenging to make your money last over the course of your retirement, especially if the sum is just sitting in the bank earning very little interest. We can help you consider your options.

An annuity pays a guaranteed income for life and is the most common way to convert a pension into an income. You choose at the outset how you would like this income paid, the frequency of payments and whether you would like to include death benefits for your spouse. Once you have purchased an annuity, your plan will remain set for the remainder of your life. Many people find this strategy comforting, others may find it a little daunting, but at Phare Financial Services we will always help you choose a pension plan tailored to your aspirations, priorities, and lifestyle.

Another common method of drawing your pension income is known as ‘drawdown’. This is often appropriate for larger pension pots and those who would like to retain greater flexibility than that offered by an annuity. This option allows your funds to remain invested in a pension, whilst you still draw an annual income. You can vary the income drawn to a certain extent while your fund continues to benefit from any further investment growth. This option also offers more flexible death benefits.

“My Property Portfolio is my Pension”

If you are a landlord intending to live off the profits from your property portfolio in retirement, then there are things you will want to consider, these might include:

  • Your plans for managing your property portfolio in later life
  • Do you need to grow your portfolio to cover management costs and retain your lifestyle?
  • Are you planning on selling property to release equity?
  • Do you intend to bring your children into the property business?

Financial planning for Landlords is an area Phare Financial Services specialise in and you can find out more on our page Financial Planning for Landlords.

If you need help with your retirement planning or pension management, please get in touch.

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