I am enjoying my retirement, but need to review my income, investment and inheritance options, as I want make sure that these suit my circumstances
Enjoy retirement with
peace of mind
You planned well for retirement and are now enjoying your later years, but it’s important to regularly review your pension plans just to make sure that they continue to be supportive of your needs. The investment landscape may change or pension regulations evolve, you may be considering planning for your family to benefit from your life time savings.
At All About Pensions, we provide clear and concise annual pension reviews that fit your personal situation. Whether it’s simply checking the investment performance, updated pensions rules or you may be considering a trip of a lifetime, we can help ensure that you are best placed to make the right choices.
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Ian had been a risk taker for most of his life and this also applied to his pension. Having recently had some losses when the stock market fell, he felt that he wanted certainty in terms of his future income. We looked at a variety of products and suggested a solution that split his pension savings between an annuity, a fixed term capital guaranteed bond and a portfolio of income generating funds.
This reduced the overall volatility of his retirement portfolio, whilst making sure that when he passed away some of the pension pot could be left to his nieces and nephews.
Silvia had been recently bereaved and had inherited a large pension fund that her husband, Ron, used to manage meticulously on what seemed to her like daily basis. Silvia was concerned that she had no knowledge of pensions and investments and wouldn’t be able to cope with managing such a large amount of money, which held the key to her income throughout the rest of her retirement.
We helped Silvia understand what she had inherited, assessed what her income needs were and created and clear and concise plan for her to understand in plain English. Silvia still misses Ron, but she is now left with one less thing to worry about.
Great Dunmow, Essex
Derek had been using his pension for drawdown since retiring 5 years ago, but recently his portfolio had lost reduced in value through a combination of poor returns and high charges. Due to the number of holidays that he had planned, Derek felt that it was no longer sensible for him to directly self-manage the fund and wanted to hand this over to a qualified firm.
We worked with Derek to ascertain the income and risk he was willing to accept and put in place a number of different funds that started to turn around performance. Derek now gets a regular performance statement and annual review which means he can focus on enjoying his retirement.
Now I’m taking my pension, what do I need to be thinking about in terms of making sure it’s all working for me?
As before retirement, to successfully manage any type of investment you need to take an interest in how the underlying funds are performing and if any of the component parts need changing to adapt to your lifestyle demands and the wider economic environment.
A few basic disciplines you could employ are as follows:
- Review your investments annually, using either an online tool or with your financial adviser, to ensure your strategy remains fit for purpose.
- Make sure that the costs and charges for running your plan are competitive.
- Look at the level of income you are drawing from the plan to check that you’re not rapidly depleting your monies and if you are, understand why.
- Don’t be afraid to take action and question your original strategy, as circumstances and markets change, so what wasn’t right then maybe suitable now.
How should I invest my pension pot to provide a secure income stream in retirement?
The default position for financial advisers is a portfolio of bonds, property and equity income funds, that aim to produce what is termed as ‘natural income’. Sometimes this isn’t good enough, so we say ‘why not combine this with a growth strategy to provide the answer?’
Using an adviser who is skilled enough to look beyond the text book solution and who will work with you to provide an element of income and capital growth from your portfolio, is an effective solution to longer term investment success.
I used my pension to buy an annuity, but now need money for home repairs, can I sell some or all of it?
Unfortunately, the plan to introduce a secondary market in annuities has been abandoned and so once you’ve bought an annuity you’re stuck with it for life.
What happens to my pension when I die?
At what age you die at matters in terms of pension planning, with the key ages being pre and post 75.
If you die before 75, you can nominate any beneficiary and payments to that individual will be made free of tax whether it is:
- taken as a lump sum
- accessed through drawdown
- paid to a dependant or not.
The nominated person can take the benefits as they choose either as a lump sum or a regular or flexible income.
If you die after 75 you will be able to nominate any beneficiary to receive the death benefit. Any payments to the chosen beneficiary will be subject to income tax at the beneficiary’s marginal rate where the funds are taken as income.
There are no restrictions on the level of withdrawals that can be taken i.e. the nominated beneficiary can take the whole fund at once.
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