Retirement planning

Retirement planning is much more than a pension, though they are still the most tax efficient way for most people to provide for their retirement.

The big question is - how much retirement income will you need ?

A Schroder Global Investor study (2016) shows that people have a good grasp of how long they will live in retirement but reveals that some have a greatly inflated expectation of the income that might reasoanbly be generated in the current climate.

Retirement remains a key focus for most people.  The study identifies that supplementing retirement income is the leading reason why some people invest and they recognised they may well live for two or more decades after retirement, but, relatively few people understand the financial commitment this represents.  In determinding how much money is needed in retirement, longevity and investment return are interwined - yet investors seem to be clear on only one half of the equation.

This lack of understanding has important ramifications for long-term financial provision, with the study suggesting that it has a real influence on both return expectations and the timeframes over which people are willing to leave their money in individual investments.

If I’m a business owner and want to sell my business to fund my retirement, how will I know what price to sell for ? Obviously as much as you can but if you don’t know what retirement income you want, then how do you know how much is enough ?

Kingsley Wealth Solutions Ltd have specialised software available that analyses charges, past performance and future projections.

It has been suggested that almost half the population are not saving enough for retirement and this is by and large due to three factors:-

  • They can't afford it
  • They don’t trust the government
  • They don’t trust pension companies
The current basic state pension is worth a maximum of £119.30 per week for 2016/7 although many people are not eligible to claim the full amount.

Many changes have taken place over the last few years, with changes in April 2006, and now the Pensions Reform that came into effect from April 2015 giving people greater flexibility when accessing their pension savings from the age of 55. With various options now available it is important that you understand the new rules and tax implications when making decisions that will affect your retirement.

We are able to help you navigate the new pension rules.