Retirement

It is our experience that many people are unaware of the extent to which they are failing to set aside sufficient sums to provide a reasonable standard of living in their retirement. There could be many reasons for this for we all have great demands on our (often limited!) resources during our working lifetime. Possibly, retirement seems like a long way away and something to worry about tomorrow. But, the longer it is left before effective plans are made, the more an individual will have to sacrifice the closer to retirement they get in order to set up adequate provisions. With Governments reducing State Pension entitlement, more and more emphasis is placed upon us as individuals to make provision for our own retirement. We can no longer rely on the State, or indeed a company scheme, to help provide the life style which we desire in our retirement.

Pension plans, whether personal or company sponsored, offer the obvious tax efficient means for retirement saving. However, most of the funds accumulated would have to be used to purchase an annuity which, because we are living longer, now provides much less value than previously. It is for this reason that we often recommend that our clients use additional types of investment, for example, Individual Savings Accounts which, though less tax efficient, offer more flexibility and greater control.

Recent legislation enables divorced couples to share funds which have accumulated during their time together. Previously, an individual (more often the wife) may have lost out on this significant asset and we can help advise those receiving a share of their spouses pension fund as to the most appropriate way of managing this sum for the future.  

In all instances, seeking good, personal, tailored advice as early as possible is important.