There has probably never been a time when there have been more conversations about pensions and retirement planning. I often overhear people discussing their pensions (sometime in the pub) and of course I talk to clients every day about their aspirations, thoughts and worries regarding retirement.
With this in mind I have written a series of blogs that highlight the different stages you might go though in your financial life.
It is worth noting that you can access some really useful information about pensions on www.pensionwise.gov.uk. This may help you decide whether or not you can make a decision on your own or whether it would make sense to take advice from a qualified financial adviser.
When you think about your journey through to retirement and beyond you will progress through the following seven stages:
Will it ever happen?
You are most likely under the age of 50 and cannot envisage retirement.
Some way off
You are likely to be over 50 and have 10-15+ years still to go until your selected retirement date (SRD) or the age when you can draw your state pension.
You have around 5 years until your selected retirement date (SRD) and are much more interested in your retirement options
Choices & decisions
You are now in the process of retiring. You are less likely now than in the past to stop working at a set date. You may go part-time and take some income from your pension pot; stop working completely and draw your income from your pension pot or you might leave your pension pot intact and continue working longer through choice or need.
You are probably fully retired now and receiving your state pensions as well as generating income from your pension savings.
Now you may be slowing down for a variety of different reasons from health issues to having done all the things you wanted to do you may be spending more time at home and have less need for income.
You may have more serious health issues or now more dependent on others. You may have a greater need for advice if you are feeling less confident about making decisions yourself about your finances.
Over the next few weeks I’ll look at each one of these stages in turn and tell you about some of the thoughts you may be having and the options a financial adviser will help you consider. If your need for advice is more urgent then please feel free to contact me.