Monthly Archives

March 2017

Mar 30
8
State Pension & Retirement

Will your State Pension Provide Enough Income for your Retirement?

By | Lincolnshire | No Comments

Whether you are coming up to retirement age or are at the early stages of planning for your retirement, you may be wondering whether your State Pension will provide a big enough income for a comfortable retirement. In many cases and even with the new rates, the State Pension is unlikely to provide a great enough income for a financially secure retirement.

It can however be a great top up to your other pension schemes. The New State Pension came into force in April 2016 and is applicable to those who are a:

  • Man born on or after 6 April 1951
  • Woman born on or after 6 April 1953
  • And have at least 10 qualifying years on your National Insurance record

      • How Much is the New State Pension?

      The amount of New State Pension you will receive will depend on the number of qualifying years you have on your National Insurance record, these can be consecutive or non-consecutive and include National Insurance Credits and voluntary National Insurance contributions.

      At its fullest amount the New State Pension is £155.65 per week, rising to £159.55 on April 6 2017. Which while better than the basic State Pension (currently £119.30 a week, rising to £122.30 on April 6 2017), it is unlikely to be enough to rely on in your retirement.

      If you are at the earlier stages of planning for your retirement it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today and even if it is still in existence when you reach retirement age, it will likely not be enough for a comfortable life in your later years.

      Seeking pension advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

      Should you Have Another Pension?

      As the State Pension is likely to be significantly less than your income it is advisable to have another pension plan in place to ensure you will be financially secure in your retirement. There are many options available and an independent financial adviser will be able to advise you on the best options for your personal circumstances and financial objectives.

      When thinking about your retirement and how much income you will require from your pensions it is important to consider the type of retirement you want, such as if you want to travel or take up hobbies and also the day to day expenses such as food and household bills. Thinking about these factors at the beginning of your pension planning will give you a clearer understanding of the right type of pension for you.

      If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

      The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

      At Pensions.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Mar 30
9
A Guide to Auto-Enrolment Workplace Pensions

A Guide to Auto-Enrolment Workplace Pensions

By | Lincolnshire | No Comments

In the past many employees may have missed out on the opportunity of a workplace pension, either because they were not offered by their employer or because the employee didn’t apply to join their company’s pension scheme. By April 2019 every employer must provide a workplace pension to those who are:

  • Aged over 22
  • Earn more than £10,000 a year
  • Work in the UK

Providing you are eligible and meet the above criteria you will be automatically enrolled in the pension scheme provided by your employer. While many employers have already adopted the auto-enrolment pension schemes, the law for them to do so does not come into force until April 2019, so your employer has until then to provide a pension scheme if they are not already doing so.

Although you will be automatically enrolled into your employers auto-enrolment pension you can opt out, but in many cases, you must be opted in to be able to opt out. If you are unsure if the auto-enrolment pension scheme your employer is offering is worthwhile it is advisable to seek financial advice from an independent financial adviser before making any changes.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

How do Auto-Enrolment Workplace Pensions Work?

Auto-enrolment pensions are designed to help you build a pension pot for the future, you will be required to make a monthly contribution which will be a percentage of your pay, your employer will also contribute and you will receive a tax relief from the Government to help you build your pension fund.

Depending on the type of scheme offered by your employer you may be able to increase your contribution amount, this could mean that your employer will contribute more too. The more you pay into the scheme the greater the benefit for your retirement.

It is important that your employer provides you with information about the scheme prior to enrolling and you should seek independent financial advice to make sure it is the best option for your personal circumstances.

What Happens to your Pension When You Change Jobs?

If you are enrolled in an auto-enrolment workplace pension scheme and change jobs, you may be able to transfer your current pension to your new employer. This will depend on the rules of your current auto-enrolment pension scheme and the rules of your new employer’s pension scheme. It is always best to seek independent financial advice on transferring pensions before making any changes to ensure you are making an informed decision.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At PensionAdvice.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Mar 24
10
Understanding the Different Types of Pension

Understanding the Different Types of Pension

By | Chelmsford | No Comments

Pensions come in all shapes and sizes and with a variety of providers and types it can be confusing to know which one is best suited to your personal circumstances.

Pension saving is a tax-efficient option that needn’t be risky, there are a number of investment options available such as putting your money in cash rather than exposing it to the risks of the stock market. Saving into a pension will help you build an income for your retirement to ensure you have enough money in your later years.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Chelmsford and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Chelmsford and across Essex.

What are the Different Types of Pension?

There are many different types of pension available and the one that is best suited to you will depend on several factors, including your employment status, personal circumstances and retirement planning objectives.

It is imperative to seek independent financial advice before entering into a pension to ensure you are making an informed decision. Let’s take a look at some of the most common types of pension schemes available.

Final Salary Pensions

Also called defined benefit schemes, these pensions are largely funded by an employer although employees may also make contributions depending on the rules of the pension. Final salary pensions provide you with a percentage of your final salary before retirement or when you leave the company as an annual income. The percentage can vary from company to company and is usually set by your employer.

Workplace Pension Schemes

With a workplace pension both you and your employer will make monthly contributions into your pension pot, these contributions are then invested by a pension provider until you reach retirement age. Workplace pensions can be trust-based or contract-based.

Stakeholder Pensions

A stakeholder pension is designed to provide an optional lump sum and income for your retirement. Stakeholder pensions are available to UK residents under 75 years of age and can run alongside other workplace pensions. The money you contribute to your stakeholder pension is invested by the pension provider to build a pension pot for your retirement.

Self Invested Personal Pension (SIPPs)

SIPPs offer greater control over your pension without being dependent on any one fund manager or insurance company. As a SIPP requires active management and investment experience they can occur greater management costs.

At Pensions.org we can help you find a registered financial adviser for pension advice in Chelmsford and across Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Mar 20
13
When Should You Start a Pension?

When Should You Start a Pension?

By | Chelmsford, Essex | No Comments

It is good practice to start paying into a pension as soon as you begin working in full time employment and start earning to ensure you have the maximum amount of time to build your pension pot. The introduction of the auto-enrolment pensions has helped younger people to start thinking about pensions at a younger age and is making us more aware of our retirement years and is helping to encourage retirement planning.

Starting a pension younger will not only provide you with a more comfortable income in your retirement years, it could also open up the possibility of being able to take early retirement. Whereas people who do not start a pension until later in life, may not have sufficient time to build a significant pension pot and could risk not being able to retire until much later in life.

If you want to start building your pension pot but are unsure of or have questions about the different types of pensions and which one is the best one for you, we recommend seeking advice from an independent financial adviser to ensure you are making a wise choice and one that will be beneficial for you in later life.

If you are looking for independent pension advice in Chelmsford and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

Is It Ever Too Late to Start a Pension?

It is important to start your saving into your pension pot as early as possible, although retirement may seem a long way away and you may qualify for the State Pension – it is not guaranteed that the State Pension rules will be the same as now in 20 years’ time and in many cases the State Pension does not provide an adequate income to live comfortably.

That said, if you have left it until later in life to start your pension pot all is not lost. While you will have less time to build your pension pot, you could still manage to build a sufficient amount to provide you with an adequate income in retirement and depending on your pension scheme you may be able to increase your contributions to boost your pot.

It is always best to seeking independent financial advice before making any decisions about your pension to ensure you are making an informed decision that is appropriate for your personal circumstances and one that meets your financial objectives.

While a pension is a great way to secure financial security for your future, it is imperative that you do not overstretch your finances. A financial adviser can work with you to determine how much you can comfortably afford to contribute to your pension pot to ensure you are left with enough money to live a comfortable life and also maintain a rainy day fund for emergency financial situations.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Chelmsford and across Essex.

At Pensionsadvice.org we can help you find a registered financial adviser for pension advice in Chelmsford and across Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Mar 20
8
Do I Need a Pension?

Do I Need a Pension?

By | Lincolnshire | No Comments

Whether you are nearing retirement age or are just entering the world of work, you may find yourself asking whether you need a pension. While most people will qualify for the State Pension, in many instances this may not be a sufficient amount to provide a comfortable standard of living for you and your family.

One of the ways to ensure your retirement years are comfortable and free from money worries is to pay into a private pension. There are many different types of pensions available and the one that suits you will depend on your personal circumstances. You may also be unsure of how much you will need for retirement or what your current arrangements will provide.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

How Do Pensions Work?

Pensions work by putting money into a pension fund during your working life, which can then be accessed once you reach retirement age. Although there are many different types of pensions such as workplace pension schemes and personal pension schemes, they can be broken down into two main types:

Defined Contribution

Where you and in some cases your employer pay money into your pension which will build your final pension pot.

Define Benefit

This is where your final pension pot is based on your salary and how long you have worked for your employer.

Pensions vary depending on their type and the offering from different pension providers, but you can usually choose to take a lump sum or regular income depending on the rules of your pension scheme. An independent financial adviser can help you understand the difference and determine which is best for you.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

Mar 18
9
Why Get Pension Advice?

Why Get Pension Advice?

By | Chelmsford | No Comments

When you are planning for your retirement, you will be faced with lots of decisions, from which type of pension you want to how much you will need in your pension pot for a comfortable and financially secure retirement.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

Finding the right pension adviser for you

If you are looking for independent pension advice in Chelmsford and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Chelmsford and across Essex.

Whether you already have pensions in place, either workplace or private, or if you are at the beginning of the retirement planning process an independent financial adviser will work in partnership with you to ensure you have the best strategies in place and are making the most of every opportunity that is available to you.

Financial advice tailored to your personal circumstances

As with all financial advice, there is no ‘off the shelf’ solution that fits the needs of everyone, it is imperative that you receive advice that is tailored to your personal circumstances and with your financial objectives in mind.

With bespoke financial advice, your adviser will take you through a fact-finding process to collect information about you. Once they have gathered this information they can then assess your unique circumstances and provide you with a personal recommendation about the best action for you to take.

In the instance of personalised financial advice it is the duty of the financial adviser to ensure the information they give you must be suitable for you. If this turns out not to be the case you have legal protection and can raise a complaint with the company, if unsuccessful you can take your complaint to the Financial Ombudsman Service.

One of the biggest benefits of seeking professional pension advice is that you benefit from the financial advisers’ expertise and knowledge. Financial advisers also often have access to a wider range of choices that you would be unable to access on your own.

At Pensions.org we can help you find a FCA registered financial adviser for pension advice in Chelmsford and across Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.