Pensions & Retirement Planning

Pensions & Retirement Planning

Planning for retirement should start from the moment you start work, but often people delay putting aside money for retirement. However it is never too late to start, or to review existing pension provisions. Putting away even a small sum regularly from the start can make a big difference to the lifestyle you will enjoy when you retire.

Retirement Planning can be a time consuming and confusing business. How much you need to save in order to reach a desired retirement income must be considered before you can decide which pension plan might suit you best.

At Nexus, we can help you successfully plan for your retirement by recommending a pension that suits your individual requirements. We are able to analyse your needs and calculate how much money you should save for retirement, based on your desired income and your personal retirement aspirations.

After calculating how much money you will need for retirement, we're then able to analyse your current financial situation and calculate any retirement shortfall. We'll then advise you on how this shortfall can be reduced, if not eliminated, so you can achieve your desired retirement income.

Retirement planning enables you to understand not only how much you need to save, but also how long you need to work for in order to reach your desired retirement income. If you want to be able to afford holidays and enjoy the free time retirement brings, then you'll need to make adequate provision.

Many people underestimate how long they are likely to live once they have retired, which is incredibly unfortunate. It could mean that after enjoying a few years of a comfortable retirement lifestyle, you realise you'll need to make drastic reductions in your spending to stretch out your income for longer, or you may even find yourself relying on state benefits to make ends meet.

At Nexus, we also understand that pension rules are complex and constantly changing. We pride ourselves on continually researching and implementing new strategies to help ensure you have the 'pension pot' you need at retirement and will see you through your retirement years.

A Personal Pension is a collective investment scheme where you and/or your employer can contribute funds so that you can draw these later on in life as an income. The Personal Pension contract attracts tax relief on contributions that you make at your highest marginal rate and the fund also grows tax free. The higher the fund value you achieve the more income you will have in retirement, starting early and being realistic about your saving goals is the secret to success.

There is a bewildering choice of pension plans on the market and we feel it is important that our clients have the maximum amount of choice when it comes to investment. Clients who want to have a wide range of choice could decide to choose a Self Invested Personal Pension Plan (SIPP) where you have access to thousands of managed funds. Most of our clients will not have the investment knowledge to make the correct choices and therefore we will help clients decide what funds are best suited to your attitude to risk. We take time to find out how much risk you are willing to take with your investments and then make appropriate recommendations.

Yes, you can have more than one pension and many people do accumulate various pensions over their working life. It is important that individuals update address details with preserved pensions and when seeking financial advice, you make sure that your adviser is aware of all pension plans that you hold.

Pensions are a long term investment and it is important to review these investments on an annual basis. Investment decisions change and so do your circumstances so we offer a review service to all clients to make sure that your choices continue to be relevant and that you are on target to achieve your retirement goals.

Drawing your pension can be daunting. Particularly as the paperwork can be confusing. At Nexus we try to simplify your post retirement options by understanding your situation and matching a solution that suits your individual needs.

The government's changes to pension legislation enables individuals like you to be in full control of their pension. You no longer have to purchase an annuity (which would provide a guaranteed income for life) with your pension pot.

This means that you are able to either draw your income directly from your pension scheme or take your entire pension’s value as a lump sum. It’s completely up to you. If you choose to take your entire fund value as a lump sum, it is important to note that any amount above the 25% tax-free allowance will be taxed at your highest marginal rate, so seeking professional advice is essential.

Pension freedom has given the greatest level of flexibility to individuals planning their post retirement. However, with this flexibility comes responsibility, as often people underestimate how long they may live. A person at the age of 65 could expect to live to about 85 years old*, meaning that their pension will have to last them another 20 years at least.

As qualified & regulated financial advisers, we are able to provide you with expert information and advice around areas such as pension freedom, annuities and flexible drawdown. We can also advise on other post retirement options that are available to you, such as the investment options that may be suitable.

We will analyse the sustainability of your chosen retirement income and advise you on how much you should be drawing from your pension. We understand that you will have aspirations of what you would like to do at retirement. This may be to go travelling or make an expensive purchase. At Nexus, we advise you on the options you have in order to achieve these dreams, whilst avoiding the risk of major capital erosion. We can help you ensure your pension will last you for many years to come.

For further information please contact us & arrange a free initial consultation with an independent financial adviser.

* National Life expectancy at age 65 - Office for National Statistics

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. The tax treatment is dependent on your individual circumstances and may be subject to change in the future.

The value of investments can go down in value as well as up, so you could get back less than you originally invest. It is therefore important that you understand the risks and commitments. This website does not provide personal advice based on your circumstances. If you are unsure about the suitability of an investment please contact us.