The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
At Derngate Wealth in Northampton, we take a considered, proactive approach to retirement advice. We take stock of your complete financial situation, taking into account your goals, how much risk you are prepared to take and what you realistically want your financial future to look like.
This means that we are retired for longer. Therefore, it’s imperative that we make our savings last. We can only do this if we make the right choices. We can only make the right choices with the right advice.
Making The Right Retirement Choices
Recent developments mean that the UK Government wants you to have greater freedom in the way you spend your pension fund. Although you now have more choice, there is also more risk as people don’t know whether to spend their money as they wish. This is where the right advice is crucial.
With the demise of final salary schemes, many of us are developing a retirement income portfolio to supplement our incomes, combining traditional pension savings and the basic state pension, as well as ISAs and other investments such as bonds. In addition, many people are choosing to continue to work part-time once they retired.
Tax Advice Is Crucial
Tax Planning is not regulated by the Financial Conduct Authority.
Tax treatment varies according to individual circumstances and is subject to change.
Once you reach retirement age you don’t want to be in a position where you need to hand over a large chunk of your retirement fund to the tax man. If you take too much out too quickly, instead of being a basic rate taxpayer you will find that you become a higher rate taxpayer.
That’s why you need good advice and careful planning so that you correctly use your tax-free cash entitlement and are aware of the penalties of withdrawing a large sum from your retirement fund.
Talk to our Northampton mortgage advisors today about how our pension advisors can help you to plan for your pension. Remember, it’s never too late to make a real difference to your retirement.