As life expectancy improves many of us can look forward to 25 or even 30 years of retirement. That makes financial decisions at the end of your working life some of the most important you will ever have to deal with.
Unless you are lucky enough to be part of the dwindling number of members of final salary pension schemes, you will need to convert the money you have saved in a private or company pension into an income.
We can help you understand the need to take time out, gather your thoughts and think deeply about how you intend to use your savings in retirement.
You are likely to be considering how to provide yourself with an income for retirement, and as part of this process it is very important to establish your views on a range of issues that may affect you in years to come.
Each of these issues will bring uncertainty to your situation in different ways. There are risks, and your views toward them and how they can be handled, or indeed removed, will affect the options your financial adviser will present to you, and the options you may select.
The 6 Key Uncertainties for Retirement Income:
• Life expectancy
• Changes to your circumstances
• Annuity rates
• Investment related risks
This is not all encompassing! There are more issues your adviser will be considering such as the strength of the company providing your income structure, cashflow analysis, family circumstances.
You have now started to think about retirement, and the income you will need when you retire. You will, in the weeks and months ahead, have to make some decisions about how to use your investments and other assets to help secure that income.
The length of this process will depend upon the complexity of your own situation and your comfort with the options being proposed for you.
Gather your information. If you work with a financial adviser already they may have all your financial information. Your adviser will want to spend some time with you at the start of the process understanding the facts and figures and may well produce for you a statement which shows all your assets, and any liabilities you may have.
Gather your thoughts. This is not easy to do because retirement means different things to us all. This is critical to your objectives and income requirements and we will discuss in detail your dreams and aspirations for retirement.
A review of your risk profile is also carried out.
Think about structuring your assets and your income. We will help you prepare a plan taking into account your views on income requirements and risk profile.
Understanding your Income and Capital requirements:
How you structure your income may be influenced by how you see your income needs in retirement. Hopefully you will be debt free as you approach your retirement, but at times this may not be the case.
How much income will you need each year, or month, going forward? The best way to work this out is to complete a budget forecast.
There are three levels of budget that you should consider.
• The basics: A budget that is your lowest possible and covers the essentials like food and housing costs but little more.
• Your lifestyle: A budget to meet your current and expected living expenses and your lifestyle expenses such as entertainment and holidays.
• Your aspirational budget: A budget to include your dreams, even those that you think may be impossible to meet! This may include special trips abroad, family treats, activities you have always wanted to do.
We believe that anyone who has over £30,000 in their pension fund should seek advice, as they could save hundreds, if not thousands of pounds over the course of their retirement.
This initial cost of The IAS Future Options Programme is 1% of your pension fund subject to a minimum fee of £500.
The initial meeting is at our expense, without any obligation on your part, and will provide an opportunity to discuss your views and whether this programme is suitable for you.
Our philosophy on your future is that you can retire from work, but you should never retire from investing.
A retirement portfolio should be flexible. It should change as you do. Simply put it needs to be flexible enough to meet your needs every step of the way.
We have distilled the retirement process, not over-simplified it. We have developed a framework that allows us to ask the tough questions:
• How much do you need to maintain your standard of living
• Will you run out of money?
• What do you need to do to keep track?
Independent Advisers (Scotland) Ltd
Independent Advisers (Scotland) Limited is registered in Scotland
Registration No. SC252740
Registered office: 81 St Vincent Street
2nd Floor, Glasgow, G2 5TF
Tel: 0141 221 4442
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