YOUR RETIREMENTREVIEW

THE IMPORTANCEOF YOUR REVIEWWe can’t stress enough how important it is toplan ahead for your retirement.

In your first meeting, we’ll prompt your thoughts …

• When will you stop working?

• Will you go part time?

• How old will your children be?

• Where will you live?

• How will you fill your time?

• What are you grand plans?

When will your state pension be due and how

much will you get?

What will your spouse receive?

Have you saved enough?

What is your essential expenditure?

What are you on track for now?

What are the benefits and drawbacks to your

current pension plans?

How much tax will you pay?

What can you leave behind and how will it be

taxed?

Can you afford the lifestyle you desire?

How do your other financial plans and policies

integrate?

For some, even thinking about pension planning seems boring, forothers it’s too far away to even think about. It may feel that way nowbut we promise it won’t when you near your desired retirement age,or start dreaming of what you’d like to do when you finally quit work…for good!

Some of your questions we can help with…

Any financial adviser will admit that the hardestconversation to have with a new client comes when weaudit their pensions and find that they need to makeserious cutbacks or cancel their grand plans for retirement.This often affects the first few years of retirement whenbig plans involving big expenditure is high on our client’sretirement to do list.

For most, retirement can’t come quick enough, but canyou really afford to retire at the age you desire? Even ifyou’re of the mindset that “I’ll work ‘til I’m dead” but..have you thought of a backup plan just in case thingsdon’t work out?

The typical age a new client enquires about his/her

retirement is fifty, with a mortgage, teenage children anda desire to retire within 10 years. Unfortunately, mosthave no idea where their pensions are, what they areworth or how much income they may generate and when.Most don’t know how much they are entitled to fromthe state, when they can draw it or how it actually works.

What is a retirement review?

A retirement review will involve a meeting with one ofour retirement experts to explore your financial planning.We will assess your needs and objectives along withreviewing the policies you have in place. We will helpyou to understand the planning you already have, whatyou need from your pensions and how you will achieve

Guardian Wealth Management are specialists in pension and retirement planning.We help clients arrange their affairs to best position themselves for their future, andsupport them along the way. We are here for you up to and throughout your retirement.

GIVEYOURSELFOPTIONSThe longer you wait to plan,the less time you have

Why take advice?

• Do you understand your pension statements?

• Do you know how your pensions work and how thisaffects your options?

• Do you know what retirement income you’re ontrack for?

• Is there a gap between when you want to retire andwhen you’ll get your state pension?

• Do you know the taxes associated with your pensionand how this may change depending on where youlive?

• Do you understand the new pension legislation, areyou keeping your plans up to date to position yourselfbest for the new rules?

• Are you within annual and lifetime limits?

• Do you monitor the performance within your plans?

• If occupational, do you know the financial strength ofyour pension’s underlying structure?

• Do you understand what will happen to your pensionwhen you die or who can or will benefit?

• Are you retiring offshore? Will you move around?

• Do you have concerns over currency exchangefluctuations?

• Have you accounted for the potential inflation ratesin your country of residence?

What’s the difference between a private pensionand my final salary plan?

A final salary plan is structured in advance, the benefitsare pre-defined and rigid. While this sort of policy isstructured and secure, it cannot adapt to your changingcircumstances and requirements. For some, anincreasing income for life is most appealing, but thereis more to consider

• UK taxation, deducted at source from your final salaryincome

• Death benefits

• The scheme’s funding status

• Flexibility over income

• The need for lump sums for one-off purchases

• The potential for investment growth beyond inflationaryincreases

• Control – over investments and costs

• The ability to structure your own income benefits,you may want a higher income early in retirement todo all the things you dreamed of, rather than findingyourself with a lovely big pension income when you’rein your 80’s.

DISPELL THEMYTHSIt’s too late?

It’s not! Even those who have already stopped

working may find it useful to take stock of their

pension plans and find out how to make them work

for the best now, and for the future.

“You can’t trust pensions!”

Private pension plans are simply savings schemes treateddifferently by law, offering additional benefits and taxefficiency whilst keeping to certain rules and limits. Theonly reason you may have heard a ‘bad news’ story aboutprivate pensions will likely be related to poor investmentperformance. When we review your pensions weconcentrate on two key areas; ensuring your investmentstrategy is fitting to your circumstances and attitude toinvestment risk then, reviewing the costs within yourpension to ensure you aren’t paying too much (This canitself inhibit growth).

“I can’t afford to save”

The trick to retirement planning is to start saving as soonas possible. A fund with 40 years to grow is more beneficialthan one you create the year before you retire with notime to grow. Save what you can as soon as you can.

“The state will provide for me, I’ve paidtaxes all my life”

The state pension is a popular toy for politicians, thesedays it is most commonly used for government spendingcuts. It is only within the last few years that women’sstate pension has moved from 60 to 68 years. In addition,the required number of years’ national insurancecontribution (NIC) has shifted from 30 to 35 years’. Whilethe flat rate pension has been much-talked about as abenefit, it is not as simple as you would first think; thereare many complex adjustments according to your NICscontributions over the years. It is highly likely that sucha large cost to the government will be cut further asrecent rumours include making state pensions meanstested and reducing the annual inflationary increase.

“My business is my pension”

This is a common but dangerous statement.Even those with the most successful business,the most brilliant successors and the perfectpartners can find themselves in turmoil atretirement. Will you sell? Will you continue to claimdividends? Will you remain a decision maker ordepend on the strategy of new owners? How will

you extract your cash? By adding a proper retirement planto your portfolio, you will be providing yourself with abackbone to your retirement, even if your business willsupplement this. Talk to us about some of the wayspensions can support and protect your business and itsassets.

Did you realise that many private pensions can purchasea commercial property? This could allow your businessto sell the property to your pension plan, meaning itcollects rent from your business and grows in value, whileprotecting the property from creditors ensuring yourfinancial security

“My house is my pension, I’ll downsizeat retirement”

It seems strange that many rely on releasing funds fromtheir property in order to fund their retirement. You mayjustify it in your mind that the children have left and youdon’t really need all that space, but would you really wantto get rid of something you’ve worked for all your life?Chances are you will have developed and cherished yourhome, so why should you abandon it when you finallyhave the time to enjoy it? The property market can befickle, it’s hard to rely on one single asset to supplementyour income, perhaps downsizing should be a considerationif your health deteriorates and you struggle with theupkeep. For your first ten years of retirement when you’restill fit and active, you surely should enjoy the fruits ofyour labour.

Information correct as of 8th May 2014. The information provided is for guidance only and advice should be sought before making any financial decisions.

Guardian Wealth Management Ltd cannot be held responsible for any errors or omissions which result in financial loss.

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