Category

Chelmsford

Jun 23
0
Pension Pot

What Can You Do With Your Defined Contribution Pension Pot?

By | Chelmsford | No Comments

If you are nearing retirement age you may be starting to consider what to do with your pension pot and be thinking about the opportunities available to you. With a defined contribution pension when you reach your selected retirement age you can usually take 25% of your pension pot as a tax-free lump sum.

There are several ways you can use the remaining funds such as using your pot as an adjustable income or taking smaller cash chunks. The option that is best suited to you will depend on your personal circumstances and will require careful consideration. Before making any changes to your pension pot it is advisable to seek independent financial advice to ensure you are taking the optimal course of action.

If you are nearing retirement age or are planning ahead for the future and would like advice on how you can use your pension pot, we can help you find a local financial adviser in Chelmsford that specialises in pension advice.

Our recommended financial advisers provide pension advice in Chelmsford and across Essex to work with you to identify opportunities available to you and determine the best solutions for your pension pot. All of the financial advisers we recommend provide advice that is tailored to your unique circumstances.

How you can use your pension pot

There several options when it comes to your pension pot and what you can do with it once you reach retirement age, including:

Leave your whole pot untouched

Just because you can have access to your pension pot, it doesn’t mean you actually have to do anything with it. If you are still working when you reach your selected retirement age, you may decide to leave your pension fund invested in your pot until you need it.

Leaving your whole pot untouched could result in your pension pot growing as it will have longer to benefit from investments. Even if it does not grow, leaving your pot untouched could mean a higher retirement income as the same amount of money would not have to last as long.

Leaving your pot untouched would also mean that you wouldn’t be liable for tax on your pension fund and should you die before 75 your pot can be passed on tax free.

Take cash in chunks

Should you wish to and depending on the rules of your scheme, you may be able to opt to take your pot in smaller cash sums until your pot runs out. You would have control on how much you take and when you take it. Taking your pension pot in smaller cash chunks would mean that your 25% tax-free cash lump sum is not paid out in one go but over all the smaller cash chunks. For example, each time you take a chunk of money 25% would be tax-free.

Adjustable income


Your pension pot would be invested to provide you with a regular income in retirement. You have control of how much you take, when you take it and how long you want your pot to last. You will still receive your 25% tax-free lump sum and the other 75% is invested to give you a regular taxable income.

Also known as flexi-access drawdown, this option may not be offered by all pension providers and as your pension pot is invested the growth of your pot would depend on investment performance and could result in a loss.

If you are looking for pension advice in Chelmsford we can help you find a specialist pension adviser that can provide advice on all aspects of pension planning, including advice on the best ways to use your pension pot when you reach retirement age.

Seeking pension advice will help you to gain a clearer understanding of the different options available to you and ensure that you have the most effective retirement planning strategies in place for your personal circumstances.

At PensionAdvice.org we can help you find a FCA registered financial adviser for independent pension advice in Chelmsford. The financial advisers we recommend offer bespoke pension advice in Chelmsford on all aspects of pension and retirement planning.

May 16
6
Key Questions to Ask a Financial Adviser

Key Questions to Ask a Financial Adviser

By | Chelmsford | No Comments

Planning for your retirement can be confusing and stressful, from understanding the different types of pensions, deciding which pension plan is best suited to you to knowing if you are contributing enough to your pension for a comfortable retirement. Seeking advice from an independent financial adviser can help remove the confusion and stress.

A good financial adviser will work with you to ensure you understand your options, the benefits and the potential risks and will ensure you have the most effective pension strategy in place. It is important to ensure your financial adviser is providing bespoke advice that is tailored to your personal circumstances and financial goals.

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 with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Questions to Ask

Choosing the right independent financial adviser is an essential part of making your money go further and ensuring your retirement is financially comfortable. Here are a few key questions to ask them:

    • Are you approved by the Financial Conduct Authority (FCA)? It is important that you use a financial adviser that is approved by the FCA and on the FCA register.
    • What services do you offer? Asking about their services will help you determine whether they have the experience and knowledge to help you meet your goals. For example, if you are looking for pension advice, but the adviser you are speaking with doesn’t offer it as a service they are not a good match for your requirements.
    • How, and how much, do you charge clients? This is likely to be one of the first questions that comes to mind once you have decided to seek financial advice. A financial adviser must tell you how much they charge before you are taken on as a client. Although they may not be able to give you an exact quote, they will be able to give you guide to costs or at least tell you how they structure their fees.
    • Will I work solely with you, or with a team? It is important to understand how they work and the kind of relationship you can expect to ensure they are a good fit.
    • How do you deal with someone who has more than one financial objective? An experienced adviser will listen to a client and help them to assess and define their key financial goals. They will be able to provide a tailored strategy that stands the best chance of achieving the targets once they have been established.
    • How regularly will you assess my financial situation and provide a progress summary? It is imperative to review your pension plan to ensure it is performing well and to review other options which may be available.
    • What will the first meeting involve? Asking about your first meeting will give you a good insight into your adviser’s approach and will help you understand how they work and what you can expect.
    • What should I prepare? Knowing what to prepare for your first meeting will ensure you are armed with the information needed and will help you get the most from your initial meeting.

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. 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 FCA registered financial adviser for pension advice in Chelmsford. 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 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.