Retirement Planning Advice in Cambridge
These days it's common for retirement to last more than 20 years. Therefore, achieving the dream of a secure, comfortable retirement requires planning.
Retirement Planning Advice Cambridge
Life expectancy today is far greater than it was 50 years ago and, therefore, retirement planning is not a luxury, it is an absolute necessity. Below is a short video that you may find helpful.
These days retirement typically lasts over 20. Therefore, you need a far greater pension pot to ensure a long, financially secure retirement than you would have needed in the past.
The State Pension provides some basic financial security (£179.60 flat rate per week 2021/2022), but the amount you receive is unlikely to be enough to enjoy a comfortable retirement and depends on a number of factors including having paid National Insurance Contributions for at least 35 years.
That's why the government introduced automatic enrolment which means all employers now have to provide a workplace pension to help people save towards their retirement rather than depend on the State pension. However, the benefits from a workplace pension also depend on a number of factors including the amount of contributions paid in, over what period and the performance of the fund your contributions is invested in.
Throw in 'Pensions Freedom', the reductions in the 'Lifetime Allowance' and 'Annual Contribution Limit' and it becomes clear that getting professional retirement advice is not a luxury, it’s a necessity.
Pensions Freedom rules introduced in April 2015 means that those aged 55 and over can draw from their defined contribution pension fund, exercising a range of flexible options to suit their circumstances, which provides far greater flexibility than before.
However, there are other important implications including death benefits, Inheritance Tax, entitlements to state benefits and long term care planning, to name a few.
Therefore, everyone with a pension should regularly review their retirement planning and if you’re thinking of taking or transferring a pension pot worth £30,000 or more you should get professional advice from an independent financial adviser.