Retirement Strategies

Many people will expect to live to a greater age than their parents and enjoy a standard of living unheard of in earlier times. In practice, this is only possible if they have arranged their affairs so as to achieve financial independence enabling them to support financially the lifestyle to which they have aspired.

How is this achieved?

Identify how much money you will need in retirement.

We all look forward to the day when we can enjoy a stress-free retirement. Sadly for many, the reality will be quite different. All now recognize that there is a pension timebomb in the future. Pensioner poverty is now considered to be at crisis level and over 2 million pensioners are estimated to live below the poverty line. It is vital therefore that you take steps now to ensure your future financial security.

How can you have the future lifestyle you want?

The first stages are to calculate an estimate of the required income you will need. This can be based on your current desired expenditure with an analysis to include the effect of future inflation. A realistic plan needs then to be drawn up based upon your current income and the growth potential of your existing assets, not forgetting that inflation can have a significant effect on your purchasing power, even on today's relatively modest inflation levels. You will also need to consider how both income and capital gains tax could affect your income in retirement. You should also consider the cost of delay. Even delaying introducing a strategy by a couple of years can have a significant impact on the amount you receive when you reach retirement, particularly if one of your objectives is to retire early. Developing structured and realistic financial strategies to enable our clients to achieve financial independence is at the forefront of Adams Russell Limited's approach to financial planning.

Funding for Retirement

In a modern world, funding for retirement is not just buying a pension plan, although this is often the backbone of most clients' strategies. It is now generally an amalgamation of using clients' assests in the most efficient way involving ranges of pension vehicles including personal pension plans, stakeholder pension plans, company executive plans, occupational pension schemes, bonds, unit trusts and other investments and investments into residential or commercial property portfolios. It is Adams Russell Limited's roll to analyse which of the variety of options available best suits your individual circumstances and to address the key concerns which are voiced by many. How much money will I need in retirement? Will the provisions I have made be sufficient if I retire early? Will my pension fund or investment company be secure? Can contingency plans be developed to offset the dangers of unforeseen events that can potentially decimate the arrangements you have in place.

Taking Benefits and Protecting your Retirement Wealth

Even when you have achieved your objective and are about to retire proper, you are likely to be faced with a bewildering array of options.

Taking occupational benefits
Buying or deferring the purchase of annuities
Utilising income drawdown options
Utilising phased retirement options
Exploring the benefits of Self Invest Personal Pensions and the associated changes following the implementation of the Finance Act 2006
The impact and implication of Income and Capital Gains Tax on income generation

All these considerations in addition to how income may be generated from investment portfolios and the overall effect of estate planning and the protection of these benefits, Adams Russell Limited can help in establishing methods which will allow you to maximize your income throughout your retirement while minimizing your exposure to taxation and protecting your assets both for yourself and future generations.