Knowing what your financial situation will be when you decide to no longer work at a fulltime job can feel a little like fortune telling. But who wants to rely on a crystal ball to know what life will be like when that regular pay cheque doesn’t come in anymore?
This is certainly not a situation that you want to find yourself in when you retire. But what options are there for you? Well pensions plans are the most obvious option to guarantee a certain amount of monthly income to help support you and your family in your older years.
Most of us put off planning for those days for as long as we can, but really the sooner you start planning your pension, the more money that you will have when you retire – so it does pay to start as soon as you can.
If you have a full time job you are most likely building up funds toward a basic State Pension and perhaps an additional State Pension, but relying on these sources of income might not be enough money to allow you to live the lifestyle you are accustomed to.
Basically all pension plans are long term investments that come with special tax rules. You can invest into pension plans when you are receiving more income, usually when you are younger. Then as your income capacity diminishes, usually after the age of 55, you can start tapping into your pension plan to receive additional income.
There are three main types of pensions:
- · Occupational salary-related schemes – your employer pays into a plan that is tied to your occupation and your salary
- · Occupational defined contribution schemes – also offered by some employers and can also be referred to as money purchase schemes
- · Stakeholder and Personal pensions – these types of plans can be started by yourself or through your employer.
The easiest way to ensure that you have a sufficient plan is to contact us. If your employer offers pension schemes, it is really a good idea to look into that option first. All employers with five or more employees have to offer some kind of pension scheme. But if you don’t have access to an employer plan, then starting your own is the next option. You can research your own options, but as we are independent financial advisors we can help you do this.
So don’t leave your financial future up to a fortune teller. Take matters into your own hands and get the best advice that you deserve and know that your financial future will be taken care of. It’s worth it!
Determining the best pension option which is suitable for you is really the crux of the whole pension purchasing planning process. There is no point receiving information or pension advice that is really not applicable to your unique financial and personal situation, so providing accurate information is really the key to the whole endeavor.
So in order for any pension advice to be valuable you need to ask yourself a few questions, so that you know what you are looking for and can narrow down your choices to get closer to finding out what will really work for you.
So you might want to ask yourself:
- · How much can I afford to invest regularly into a pension plan?
- · When do I want to retire – how many years do I have left?
- · What other investments or savings do I have?
- · Do other members of my family have pension plans?
- · What should I receive from the State Pension?
- · What kind of risk am I willing to take with my money?
you should also ask the following questions:
- · What type of investments will work for my situation?
- · How much money do I need to save in order to get the returns that I will need?
- · What options are available based on my current job, my current assets, how long until I retire etc?
Once you have determined that the pension plan that you want to invest in is the right one then we can provide a certain amount of information about the pension scheme including:
- · All the details about that features of the pension plan
- · How it works
- · All the benefits of the plan
- · The cost estimations of how much income you will receive upon retirement – these are forecasts and can fluctuate depending on how much investment you make
- · All the applicable fees and other charges that you might incur
- · How all your contributions will be invested within the plan
- · Any other features such as when you can change your mind about investing if you change your mind