Daniel Stansall, independent financial adviser Barnet North London
Daniel Stansall, IFA Barnet - What to do if you are some way off from retirement
Friday 13 October, 2017
It is never too early to start saving for your retirement. As some of the pension decisions you make now may not be reversed later, it is important you make the right choices and shape your retirement plans to best meet your individual needs and circumstances.
Read our brochure Your Retirement Options - Freedom & Choice: before, at and in retirement it will help you understand the new pension changes and give examples of what you need to do whatever your age and situation.
Daniel Stansall, Independent Financial Adviser, Barnet, Hertfordshire reviews what you need to consider when you are some way off retirement?
1. It makes financial sense to set up your financial plan as early as possible to achieve your financial goals and objectives in retirement.
2. Use our Lonsdale Lifetime Financial Planner to calculate your retirement income. Set up a Lifetime Financial plan to see how your current and future income and expenditure decisions and life events will affect your retirement income.
When we set up your Lifetime Financial Plan, your Financial Adviser will ask you the following questions:
When would you like to retire?
When you reach your selected retirement date, do you intend to give up work completely or work part-time?
How much income do you need to fund your lifestyle in retirement?
How much savings do you require to generate your required income?
Will your existing savings and investments achieve your financial goals at retirement?
Are you utilising all available tax allowances?
3. Keep your financial plan on track by annually reviewing it with your Financial Adviser. If you plan and regularly review your financial priorities you are more likely to achieve them.
RETIREMENT PLANNING CASE STUDY
Jack – 54 years old – sales manager earning £60,000 p.a. Member of his company’s defined contribution scheme – value £150,000.
Defined benefit pension scheme – value – £25,000 from a previous employer.
Anne – 53 years old – teacher earning £35,000 p.a. Contributes to Teaching Final Salary Pension Scheme – value £15,000 p.a.
Dependents – two children aged 25 and 26. No mortgage on their home.
Cash savings valued at £50,000.
KEY CONSIDERATIONS IN RETIREMENT PLANNING
1. Jack and Anne want to travel after they have both retired. They want to know how long they will have to work and what level of pension income they will have in retirement?
2. Their two children are currently renting so they are considering gifting money to them so they can buy their first homes.
Daniel Stansall, Independent Financial Adviser, and member of the Barnet financial planning team, Hertfordshire, said: ‘I would review Jack and Anne’s current expenditure and then consider how much retirement income the couple require. I would factor in their plan to travel extensively when they retire. I would review their current savings, investments and pensions and prepare a Lonsdale Lifetime Financial Plan for them.
By modelling various scenarios I could show them how saving more into their pensions now and taking advantage of tax-efficient products such as ISAs could have a big impact on their final retirement income.
Their Lifetime Financial Plan would also show them when they could afford to retire. I would explain the new pension regulations so they understood how the new ‘Freedom & Choice in Pensions’ would affect them. Finally I would factor into their plan gifting money to their children to purchase their own homes.
CONCLUSION
By taking financial advice, Jack and Anne have their own Lifetime Financial Plan that will be reviewed annually and adapted for any change in their circumstances. They can remain confident that they will achieve their financial goals in retirement.
Our Financial Advisers are qualified to give pension advice having passed the Chartered Institute of Insurance (RO8) Pensions Update examination.
If you are a long way from retirement but want to know more about how to plan your finances read:
Daniel Stansall, independent financial adviser, Barnet, Hertfordshire: Why you should regularlty save into a pension; Deb Nolan, independent financial adviser Leeds / Bradford: Why financial advisers should explain the risks and rewards of investing; Deb Nolan, independent financial adviser Leeds / Bradford: Financial advisers have a responsibility to educate before offering financial advice.
