Embracing retirement: a new chapter of life begins
Retirement may give you more freedom and time to spend doing the things you love, but you’ll still need an income. Without a regular salary it can be hard to adapt to life as a retiree whilst maintaining the standard of living you're used to. This is where a financial plan can help you prepare for your next chapter.
Our specialist financial advisers aim to help you enjoy your retirement
Investing for income in retirement
Your goal, like that of many retirees, may be to generate as much income as possible from investments, while making sure that enough remains in your pension pot and other investments such as an Individual Savings Account (ISA), so that they last as long as you need them to. There are a number of income producing products you could consider for this.
An annuity could pay you a regular income for the rest of your life, no matter how long you live, giving you valuable financial stability. You can choose the features of the annuity to suit your needs, including how often you receive the payments, and whether they’re fixed or increasing. You could also choose an annuity which provides a regular income for a fixed period of time for example to cover the period between you retiring and your state pension starting.
You could consider using the money saved in your Individual Savings Accounts (ISAs) or General Investment Accounts (GIA) to provide an income and/or a lump sum when you retire. Tax treatment depends on the individual circumstances and may be subject to change in the future which an adviser could explain.
Self-Invested Personal Pensions (SIPPs) offer a tax-efficient and flexible way of keeping your money invested whilst allowing you to draw down an income to fund your lifestyle. You can start to access your pension pot once you reach minimum pension age (this is currently 55 but rising to 57 from April 2028).
Onshore and offshore bonds
Both onshore and offshore bonds are essentially investments in the form of insurance contracts with certain tax advantages as they have a different tax treatment from other UK-based investments.
A long-term care annuity is a type of insurance policy which provides regular payments to a care home for as long as you live in exchange for a lump sum payment which could protect your estate in the long run. This could be particularly valuable if you live significantly beyond your life expectancy.
Remember, the retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in. Also, tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
How far could a £250,000 pension pot go?
Rising annuity rates have increased the guaranteed income levels you could potentially get in retirement. So, is buying an annuity the best option and what income could you expect to receive?
Have you considered?
The evolving stages of retirement
After you finish working, you’re likely to experience evolving stages of retirement. These can have profound implications, affecting both you and your family. From potentially being active at first to needing care later in life, what are the financial considerations associated with change?
Planning for later life care
When planning for later life, often people probably think of this as saving enough for retirement or putting a will in place for passing on wealth. But what about planning for later life care? Just because needing care is not a certainty, it doesn’t mean that you can’t plan for it.
Taking control of how you pass on your wealth
Family conversations around managing wealth in later life and passing it on to the next generation have never been so important. Estate planning could help you to pass on your wealth smoothly and efficiently, avoid family disputes, and manage the tax bill.
Let's start with a free initial consultation
We'll begin with a free, no obligation conversation to understand if our service is right for you. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.