Retirement planning

Retirement Planning

Retirement planning falls into three stages:

1. Pre Retirement

We can provide a projection of your likely retirement income, including state pensions and ISA / investment income, in today’s terms, and establish what contributions and/or returns are required to attain the level of income you seek.

Factors that affect the accumulation of a retirement fund include:

  • amount of contributions
  • years to retirement for compound growth
  • exposure to risk / rate of growth
  • product charges eroding returns.

We can help you to reduce exposure to investment risk as you approach retirement to make your retirement fund and the associated income more dependable.

2. At Retirement

We will review your pension arrangements and the associated benefits, looking out for beneficial terms like Guaranteed Annuity Rates or enhanced tax free cash entitlement, or potential problems like high exposure to investment risk or policy penalties like With Profit market value reducers.

We will review your entitlement to open market annuity rates, including enhanced annuity rates based on personal underwriting, to identify the best level of income available.

We will also provide details on the options of capped and flexible income drawdown.

We will discuss with you the relative merits of all of the above options including how to maximise tax free cash, income and also death benefits for dependents.

In addition to dealing with your pensions, we will also assist with your investment arrangements to ensure they meet your requirements in retirement, for instance arranging fund switches to change the focus from capital growth to a combination of income and growth, and perhaps reducing exposure to risk.

3. Post Retirement

Where income drawdown is used our on-going service will review the portfolio and report regularly on performance, income levels, exposure to risk, any proposed fund switches and the state of annuity rates.

Our on-going service also applies to investment arrangements where we will review the portfolio in light of any changing objectives and report regularly on performance, income levels, exposure to risk, any proposed fund switches and the annual discipline of using the Stocks & Shares ISA allowance, often by the bed’n’ISA process drawing on existing non-ISA investments.

Later on our reports also assist Executors in identifying estate assets and we will arrange the provision of Probate valuations and thereafter the transfer of investments to the beneficiaries of the Will.