Retirement
Retirement planning is so much more than just pensions, which is the first thing that comes to mind for most people and, indeed, for many advisers.
Retirement planning is making use of all the assets available to you (pension funds, investments, cash deposits, sometimes even the family home) and with them arriving at a combined strategy to provide both of you not only with enough income in your retirement, but also enough capital to draw down for future projects or emergencies.
Capital planning is often overlooked but equally important, as you will have needs for one-off expenditure in retirement not allowed for in your income planning. These items may include home improvements or alterations, replacement cars, care costs or medical expenses (typically two thirds of your lifetime medical costs will arise past the age of 65 [source: Framlington]).
In retirement you will normally be living off investments (including pensions) income and not saving separately for these events, so it is important to get your retirement planning right to avoid difficulties later on.
Planning for your retirement will pay dividends in later life – the provision you make now will supplement a State Pension which is in long-term decline. Your contribution will be ‘topped up’ by HMRC, as the Government is encouraging saving for retirement. Contributions from businesses into pensions can be offset against taxable profits.
Pension legislation can be complicated. As one of Gateway’s core activities, we can highlight the various schemes which can offer tax advantages, as well as provide you with your chosen standard of living, after retirement.
