These days it's common for retirement to last more than 20 years. Therefore, achieving the dream of a secure, comfortable retirement requires planning.
Life expectancy today is far greater than it was 50 years ago.
These days retirement commonly lasts over 20 and although the State pension provides some basic financial security, the amount you receive is not great and depends on a number of factors. You need a far greater pension pot to ensure a long, financially secure retirement than you would have needed in the past.
That's why all employers now have to provide a workplace pension to help people save towards their retirement, over and above the State pension. However, the benefits from a workplace pension also depend on a number of factors including the amount of contributions paid, over what period and the investment performance of the fund.
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 will need to review their retirment planning and if you’re thinking of taking a pension worth more than £30,000 you must get professional advice.