SWT Wealth Management
Advertising feature: Pensions and retirement planning may be at the back of your mind.
However how important is it and why should you be considering now, the income you are going to have in retirement?
Well one thing is for sure, you cannot work forever. As you get older how realistically could you continue to work in your chosen occupation into your late sixties. If you were born after the 5th of March 1961, state pension age is 67 and is constantly reviewed.
The current state pension pays £179.60 per week if you have 35 years of qualifying national insurance contributions (2021/2022 tax year).
The state pension should not be viewed as your main income in retirement it should be viewed as a supplement to your other provisions you have put in place. The state pension provides a basic standard of living, not a comfortable one.
Live expectancy is increasing. You could be spending as much time in retirement as you did in work. Retirement is when you have the benefit of time on your hands. Time to go and do the things you could not do when you were working. However, you also need the income to support this.
How can you ensure that you have enough income in retirement to give you the kind of lifestyle that you want?
1. Firstly, work out how much income are you are going to need in retirement, include living and leisure/luxury costs?
2. Review what you have in place already (private, state pensions and savings.
3. If you have no idea of what pensions you have from old employees or previous providers, arrange a pension review, and get some professional advice on these policies. This will provide you with the information and advice that you need and give you an idea of what income and flexibility you have in place with current arrangements.
4. If there are shortfalls, taking advice will enable you to put a plan together, to get you nearer to where you want to be. Having regular reviews will enable you to stay on track with that plan.
Pensions and their flexibility changed with the Pension Freedoms Act 2015. This enables individuals with a defined contribution scheme the ability to access their pension pots however they wish from age 55 onwards (rising to age 57 in 2028). However, not all pension schemes are the same and not all offer the flexible benefits that you may require with your retirement planning.
Cashing in a pension pot without taking professional advice, may result in valuable benefits being lost or tax charges. Plus, the potential of reduced ability to fund further pension pots in the future.
The levels and basis of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is dependent on individual circumstances.
SWT Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth
Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products.
To find out ways we can help visit: www.swtwealth.co.uk or contact us on 029 2252 0168 or 07946183512