People are living longer than ever before. The life expectancy for people reaching 65 is now 86 for men and 89 for women. This means some people could end up spending a third of their life in retirement.
The government is facing a huge problem with the cost of funding the state pension. As a result, the government’s Pensions Bill proposes that the state pension age rise to 66 for both men and women by 2020. However, discussions regarding when this will happen and what the state pension age should be are ongoing.
Those who plan for their retirement by making their own provisions will usually end up better off than those who bury their heads in the sand or leave things too late. More importantly, if you take professional advice you could be even better prepared for the future.
How much is your pension going to pay in retirement?
If you have a pension, and especially if you haven’t, now is the time to take a look at your retirement plans. Absolute Financial Management can help you review your pension affairs and provide sound advice on how to fund your retirement.
Many investors don’t understand how much of their pension is disappearing in charges. If you review your pension you could stand to make savings and improve your income levels in retirement.
- Low cost Sipp with tracker
- Low-cost Sipp with managed
- Stakeholder pension
- Old-style pension
Source: Hargreaves Lansdown, based on 6% growth, £100 a month contribution
Finding the best investment for your stated attitude to risk will make a big difference to your final maturity value at retirement.
The problem is that investment performance is based on historical data. It’s therefore possible that your fund has not performed as you envisaged.
Absolute can review your investments and select best of breed funds for the future. We also recommend that you have an adviser continue to monitor you funds, and we can help you we this.
A contribution is the amount of money paid by you or your employer into your pension on a monthly basis. By paying too little you will not achieve the size of fund needed to support your desired lifestyle at retirement.
A contribution shortfall can be avoided if you review your pension. Absolute Financial Management are independent financial advisers with all the tools needed to assess how much you might need to contribute to achieve your retirement goals.
Over the years you may have accumulated a number of pensions, either ones which you have setup yourself or via your previous employers.
This makes them difficult to manage and making a single pension pot which you can universally invest and contribute to, is normally seen as a decent strategy.
You may also find you can save money on charges by combining your pension values and benefiting from a provider-offered large fund discount.