Selecting the most suitable type and securing the best possible deal
As we navigate life’s journey, retirement presents both a dream and a challenge. It’s the stage where we finally enjoy the fruits of our labour, a time for relaxation, exploration and personal growth. But the question that often looms is how can we ensure a steady income stream that keeps pace with our aspirations and maintains our lifestyle? Enter the world of annuities.
Over recent years, our comprehension of the climate crisis has significantly transformed. Countries and organisations are becoming increasingly ambitious with their net zero targets, while many individuals are making lifestyle alterations to reduce their household carbon emissions. However, some remain oblivious that pensions represent one of our most potent tools for making substantial strides towards net zero.
Protecting assets from market volatility in the lead-up to retirement
For many individuals, their pension investments are allocated to funds. These could be funds selected by their pension provider or ones they’ve chosen independently. Traditionally, retirement planning has centred around investing in shares-based funds during one’s younger years. As retirement approaches, the strategy typically shifts to de-risking the portfolio, diversifying into bonds, cash and shares.
Financial stability is the primary motivation for many to continue working
Recent studies indicate that approximately half (49%) of non-retired Britons plan to extend their working lives beyond the age at which they’ll receive their State Pension[1], equivalent to approximately 19.2 million individuals[2].
Investing after retirement is quite distinct from accumulating wealth during your working years
After a lifetime of hard work, you’ve successfully built a substantial and comfortable retirement account. Congratulations are in order. You’ve officially entered the golden years of retirement! Now, it’s time to enjoy the fruits of your labour, provided you’ve laid the groundwork for a well-prepared retirement. But investing after retirement is quite distinct from accumulating wealth during your working years.
Life expectancy significantly influences the size of the pension pot you will need
Living to the ripe old age of 100 could require an additional £260,000 in pension wealth to ensure a comfortable retirement, compared to someone living until the current average life expectancy, according to the Office for National Statistics (ONS)[1].
Paving the way for a financially secure and enjoyable post-working life
Identifying what will bring you tranquillity and satisfaction in your retirement is a crucial first step. However, understanding the financial pathway that leads to this goal is equally important.
Retirement signifies a well-deserved achievement, a significant turning point in life. It should be a period of anticipation and joy, an opportunity to indulge in activities that bring happiness and contentment. Currently, retirement is marked by increased flexibility in accessing your pension savings. While this offers many choices, it also gives rise to numerous queries.
Significant reforms and rates cut for millions of workers
National Insurance is a cornerstone of the welfare and benefits system. As a citizen, your contributions will likely play a significant role in funding state provisions such as pensions, maternity leave, and bereavement support. If you’re over 16, under the state pension age, and either employed or self-employed, chances are you’re making National Insurance Contributions (NICs).
‘Triple Lock’ to increase by 8.5% from 6 April 2024
The State Pension is set to increase commencing on 6 April 2024 due to a mechanism known as the ‘Triple Lock’. Chancellor Jeremy Hunt has announced an increase of 8.5%, which pensioners will welcome.
