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Could you Benefit from a Pension Review?

Could you Benefit from a Pension Review?

By | Lincoln | No Comments

As with any long-term plan, financial or not, it is good practice to regularly review your plan to ensure it is still the best option for getting the best results. This is especially true when it comes to pension planning, reviewing your pension will help you monitor the performance of your pension plan and make amendments accordingly.

If like many people, you have not reviewed your pensions since they were set up or for some considerable time, it may be time for a pension review. To ensure you have the best pension planning strategies in place, it is advisable to seek independent financial advice that is tailored to your unique personal circumstance and financial goals. Our recommended financial advisers provide pension advice in Lincoln and can help you review your pensions, track lost pensions and devise a pension plan that is best suited to you.

Benefits of reviewing your pension?

As people are living longer, our pensions have to work harder than the pensions of our parents and grandparents. It is not uncommon for retirement to last for 30 years, meaning our pensions must provide an income for a longer period of time. To ensure you are getting the most from your pensions and are making use of all available options and freedoms it is imperative to regularly review your pensions.

It has never been more important to not rely on your State Pension as your sole retirement income, at its fullest amount the New State Pension is currently £159.55 per week which is unlikely to be enough income for a comfortable retirement. It is good practice to treat your State Pension as a top-up to your private or workplace pensions.

Working with an independent financial adviser to perform regular pension reviews will help you understand your current position and the action that needs to be taken to ensure you have a financially secure retirement and can live the lifestyle you want in your later years. A pension review may also help you trace pensions you have lost track of such as workplace pensions with an ex-employer.

Undertaking a pension review will give you the peace of mind that your pensions are working as hard as you are, so you can enjoy a good income in retirement and live comfortably in your later years. Pension planning often begins as soon as we start our working life and what was a good solution some years ago, may not be so favourable now, a pension review will help you identify what is working for you and what other solutions are available.

Is it time for a pension review?

To help you determine whether it could be time to review your pension, ask yourself the following questions:

  • What charges you are paying for your pension?
  • What investment returns are you receiving from your pension?
  • How much retirement income will your pension generate?
  • Have you reviewed your pension in the last 5 years?
  • What age will you retire or be able to afford to retire?

If you are looking for independent pension advice in Lincoln 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.

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

What Can You Do With Your Pension Pot?

What Can You Do With Your Pension Pot?

By | Lincoln | No Comments

If you are nearing retirement age, you may be considering what you can do with your defined contribution pension pot. There are a variety of options available to you and typically you can take 25% of your pot as a tax-free cash lump sum, but what can you do with the rest?

There are many ways you can take your defined contribution pension pot, to ensure you are making the best decision to suit your needs and personal circumstances it is good practice to seek pension advice from an independent financial adviser to ensure that you have the most effective and efficient pension planning strategy in place that is tailored to your personal financial situation and provides a sufficient income for your retirement.

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

The financial advisers we recommend are experienced in retirement and pension planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincoln and the surrounding areas.

Let’s take a look at some of the solutions that may be available to you to give you a better understanding of your options before speaking to a financial adviser.

Leaving your pot untouched

When you reach your selected retirement age you do not have to start taking money from your pension pot, you can leave your money invested until you need it. Leaving your pension pot untouched may be a viable option if you continue to work after your selected retirement age and leaving it invested could mean that your pension pot could grow and you could have more money to last a shorter length of time. If you decide to leave your pension pot untouched, you would not be liable to pay tax on your pension pot.

Buy an annuity

You can use the money you have saved in your pension pot to buy an insurance policy called an annuity that guarantees you an income for the rest of your life – with no restrictions on how long you live. It is possible to take 25% of your pot as tax-free cash and buy an annuity with the other 75%. You would be liable to pay tax on your annuity income.

Flexi-access drawdown

This type of drawdown provides you with an adjustable income from your pension pot, which means you can take a regular income from your pension pot but are able to make changes or take cash sums if needed. You are able to take 25% of your pot as a single tax-free cash sum, the remaining 75% is invested to give you a taxable income.

Take small cash sums

It is possible with some but not all pension providers to take smaller sums of cash from your pension pot, how much and when you take it is up to you. Each time you release a small chunk of money, 25% of that sum is tax free and the rest is taxable – meaning that your 25% tax-free amount is paid over a period of time rather than in one lump sum. It is important to mention that some pension providers may charge a fee for taking out cash.

Take the whole pot in one go

It is possible to cash in your pension and take your pot in one go by taking your whole pension pot as cash, this would break down into 25% being tax free and the remaining 75% would be taxable. While this may seem attractive, it would mean that your pension would not provide a regular income.

It is imperative to seek independent financial advice before making any changes to your pension pot and to ensure you are making the best decision based on your needs and financial objectives.

At Pensions.org we can help you find a registered financial adviser for pension advice in Lincoln and the surrounding areas. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances and meets your financial and retirement objectives.

Self-Employed Advised to Plan for Retirement

Self-Employed Advised to Plan for Retirement

By | Lincoln, Lincolnshire | No Comments

It is anticipated that many self-employed workers do not have sufficient pension saving plans in place to provide an income for their retirement. While many employed workers have had the opportunity of auto-enrolment workplace pension schemes, this initiative does not include the self-employed meaning they need to set up their own pension savings plan to ensure they have a sufficient income in retirement.

Although, for many self-employed workers this can be a difficult task. Variable income plays a big part in why self-employed workers are unable to commit to regular retirement savings. Not knowing what they have coming in each month, makes it much harder to calculate what they can afford to save each month. And with the absence of employer contributions their pension pots may grow slower than someone who is employed.

If you are self-employed it is good practice to seek pension advice from an independent financial advisor to help you understand and determine your financial situation and help you to implement pension planning strategies that will help you reach your retirement income goals.

The experienced team of independent financial advisors at Castlegate provide pension advice in Lincoln and across the East Midlands. We regularly work with self-employed workers to provide support and guidance to ensure they have the best retirement planning strategies in place for their personal circumstances and financial objectives.

Our independent financial advisors provide pension advice in Lincoln and the surrounding areas to ensure you have the most efficient strategies in place and help you choose the most suitable type of pension for your requirements.

As a self-employed worker you will still be eligible to claim the state pension, for many this will not provide an adequate income for their later years – making it imperative for the self-employed to make additional plans for their retirement. Also, 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.

Types of Pensions for the Self-Employed

The majority of self-employed workers use a personal pension for their pension savings, there are three types of personal pension:

A Personal Pension Plan

– A personal pension plan helps you save money for retirement and is available to any UK resident who is under 75 years of age.

A Stakeholder Pension Scheme (SP)

– A Stakeholder Pension is a type of personal pension plan designed to provide an optional lump sum and income in retirement.

A Self Invested Personal Pension (SIPP)

– Unlike a standard personal pension, a SIPP holder has a much wider choice of assets to invest in, each of which can be selected to meet the individual’s personal circumstances and requirements.

Each of the different types of pension plans have their benefits and the one that is best suited to your requirements will depend on your personal and financial circumstances. It is recommended that you seek advice from a regulated financial advisor such as Castlegate, who provide pension advice in Lincoln and across the East Midlands.

If you are looking for pension advice in Lincoln or across the East Midlands for support and guidance with retirement planning, please do not hesitate to get in touch to talk about the most appropriate investments products for your personal circumstances and financial objectives.