We are all living longer than ever, with many people now living well into their 80’s, 90’s and beyond. When the time comes to retire, most of us hope to spend the final phase of our lives relaxing and enjoying the money we have spent our lives working hard to earn. However, with many pensions falling short of expectations and state benefits reducing and starting later, it is crucial to plan ahead and look at all your options to ensure your retirement fund is adequate to meet your needs.
At PFM, we believe in being proactive when it comes to retirement planning as there are many ways to fund retirement. Perhaps the most obvious route is a pension, although some people decide to use their home or other properties, or alternative savings and investments. We can help you to decide the best means to provide retirement income, the right time to stop work, and how to maximise your income when you do.
An assessment of your retirement planning and options will include consideration of your existing provision including State pension, the income you are likely to need in retirement, and establishing whether a shortfall exists. Once we have made this assessment we can discuss and agree on the most suitable way of bridging any gap in retirement funding. We can also advise on the various options for drawing pension income and lump sums, or converting other assets into an income stream.
Converting a pension fund into income may include annuity purchase, fixed term annuities, phased retirement, income drawdown, or a combination of these methods. We can talk you through the pros and cons of the various routes and help to demystify some of the confusion and complexities surrounding pensions.
Long term care
Once we reach old age it is important to make sure we have sufficient provision to fund long term care, should we need it. With more of us living longer, there is a high chance many of us will need care and assistance. It is therefore important to make preparations to meet what can be a costly bill, without selling your home. Our specialist advisors will be able to help and advise on the most suitable course of action for you.
Past performance is not a reliable indicator of future returns. You should be aware that the value of an investment can fall as well as rise and that investors may not get back the amount they invested.