How to make sure you enjoy your retirement

5 tips to improve your golden years, no matter what your current stage of life

Retirement may seem a long way off for you at the moment, but that doesn’t mean you should forget about it.
 

1. Have you considered how much State Pension will you receive?
The State Pension is a valuable foundation on which to build your retirement income, together with any workplace or personal pension provision you have. If you work, you’re required to contribute, and if you don’t work, you might be making voluntary contributions or being credited as though you were contributing. You can log onto www.gov.uk/calculate-state-pension to get a State Pension forecast.

2. Track down your missing pension(s)
You might move jobs a number of times during your working life and pay into a number of pensions. It can be hard for you to keep track of your pensions. If you do lose track, you can visit www.gov.uk/find-lost-pension to track your lost pension or pensions.

3. Think about the ‘what if’ scenario – who inherits your pension pot?
Make sure your pension paperwork is up to date, or there could be confusion over who the beneficiary should be. This is particularly important if you’re not married and you want to safeguard your partner’s position. Most pension providers have an Expression of Wishes form where you can state a preference for who should receive your pension pot once you’re no longer here. There are typically different choices depending on the type of pension and also whether you’ve started to take an income yet.

4. How much have you saved for your retirement?
If you don’t know, what are you expecting to live on later in life? When thinking about your income in retirement, you need to consider the sort of retirement you want and how much money you’ll need. We can help you to review how much you’ve saved for retirement so far and explore your options if you’re not saving enough.

5. Relationships
Another factor is the rise in ‘silver splitters’ – those who divorce and form new relationships later in life. More relaxed attitudes to divorce among the ‘baby boomer’ generation in comparison with their parents, as well as greater financial independence among women, have been cited as possible explanations for this. We recommend that you seek legal and professional financial advice to help preserve your chances of having the retirement you want and are entitled to.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of and reliefs from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. This information does not constitute advice and should not be used as the basis of any financial decision, nor should it be treated as a recommendation for any specific product. Although endeavours have been made to provide accurate and timely information, Professional Practice Services cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions.

Professional financial advice you can trust
If you’re approaching retirement, it’s time to think hard about your options. These are some of the most important decisions you’ll ever make, so let us help you. Please contact us to discuss your requirements.



Call our friendly, knowledgeable team for a confidential, no obligation discussion:

01527 880345

Visit our Website at:

www.pps-vet.co.uk

Professional Practice Services is a Veterinary Business Consultancy and Independent Financial Advisory Firm. Professional Practice Services is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate finance, will writing, commercial lending, taxation or trust advice

Article Reference: PPS062014.GM13

Securing a bigger annuity income

The lack of professional financial advice can be costly

You only have one opportunity to shop around for your annuity. This is called ‘exercising the open market option’. Once you have committed to an annuity provider and started to receive an income, the decision can’t be reversed. So it is essential that you shop around and obtain professional financial advice to help you through the process.

Despite the enormity of the changes announced in the 2014 Budget surrounding the lifting of restrictions on Pension benefits, there is still a continuing role for annuities, especially where you seek the peace of mind for a lifelong secure regular income.

Failure to shop around
The National Association of Pension Funds (NAPF) pointed out that the failure of someone to shop around – or being unaware they were able to do so – might reduce their annual pension income by a third.

The insurance industry has in recent years reformed its annuity practices, and insurers now have to conform to guidelines set down by the Association of British Insurers (ABI).

New guidelines will require insurers to:

•    Provide clear and consistent information, including details on how to shop around for an annuity
•    Highlight the details of enhanced annuities – the higher pension income available to those with shorter life expectancy
•    Signpost clients to external advice and support that is available
•    Give a clear picture of how their products fit into the wider annuity market

The point of retirement
Insurers have been obliged since 2002 to draw their clients’ attention to the fact that they can shop around for an annuity at the point of retirement.

One of the ways in which people may end up with too small an annuity is by not taking into account their own medical circumstances. Having conditions as seemingly manageable as high blood pressure or diabetes could qualify you for an enhanced annuity, which could pay you more income because your average life expectancy may be less.

Key points about annuities:

•    Make the right decision now, because you cannot reverse it later – don’t just accept the annuity your pension provider gives you
•    Shop around – it could be worth up to a third more income per month for you
•    You can combine multiple pension pots into one annuity
•    Common health issues, including smoking, high blood pressure and diabetes, can lead to an even higher monthly income
•    Obtain professional financial advice

Lack of knowledge
Getting the best annuity rate is just the tip of the iceberg. There are many important issues which, if ignored, could have a detrimental effect on your annuity income. At present, many people who cash in their pensions simply sign up to the annuity provided by their insurer, but this is rarely the best offer.

Live better in retirement
If you are approaching your retirement, we can take you through the process step by step to find the best annuity for you. Your retirement should be a special time when you do those things you never had the opportunity to do before. So it’s essential you think and plan carefully, as the decisions you take now cannot be undone later. If you are concerned about your retirement provision, please contact us to review your current situation.

Handing over all, or part, of your pension fund

To calculate your annuity they take into account:

•    Your age
•    Your gender
•    The size of your pension fund
•    Interest rates
•    Sometimes your health

Examples of health problems that might entitle you to a higher income include:

•    Cancer
•    Chronic asthma
•    Diabetes
•    Heart attack
•    High blood pressure
•    Kidney failure
•    Multiple sclerosis
•    Stroke

There are other health conditions that could also mean you receive a higher income, so if you’re on any prescription medication, we can check with your provider whether you are likely to qualify.

Other reasons for higher payments
You might also be able to receive a higher monthly retirement income if you are overweight or if you smoke regularly.

Some companies also offer higher annuity rates to people who have worked in certain jobs, such as those involving a lot of manual labour, or who live in particular areas of the country.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of and reliefs from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. This information does not constitute advice and should not be used as the basis of any financial decision, nor should it be treated as a recommendation for any specific product. Although endeavours have been made to provide accurate and timely information, Professional Practice Services cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions.

Professional financial advice you can trust
Not only will different annuity providers offer different rates, they’ll also offer different annuity options. We can help you shop around to find the right type of annuity that suits you. To discuss the options available to you, please contact us.

Call our friendly, knowledgeable team for a confidential, no obligation discussion:
01527 880345
 

Visit our Website at:
www.pps-vet.co.uk
 

Professional Practice Services is a Veterinary Business Consultancy and Independent Financial Advisory Firm. Professional Practice Services is authorised and regulated by the Financial Conduct Authority
The Financial Conduct Authority does not regulate finance, will writing, commercial lending, taxation or trust advice.

Article Reference: PPS062014.GM12