How to create financial peace of mind

Every retiree wants to be sure of their financial security when their full-time working life comes to an end and circumstances change.

We need to know how to build, grow, protect and preserve our wealth. Understandably, we seek to have more money in our pockets while enjoying the best possible lifestyle. And we would like this to continue indefinitely.

How to enjoy financial freedom in retirement

The likelihood of our prosperity depends on our skills in managing money and the quality advice we receive (and act upon) from financial specialists. Overhaul your household budget (starting with your bank statements) to see where money is being spent.

Reliable financial advice

The first step is to choose an IFA you can rely on, someone who:

  • Listens carefully to find out what you need, understands your challenges and individual circumstances
  • Puts together a personalised pension and investment package for you
  • Has all the answers about pensions (the law is constantly changing)
  • Explains how you and your pension will be affected when the Spring or Autumn Budget is announced,
  • Advises you when to withdraw money and when to leave money invested for long term growth
  • Gives advice on safeguarding your pot if you need to find money to pay for luxuries and specialist medical treatment
  • Helps you understand and minimise risk.
  • Shares insights on what is happening in the financial markets, backed up with advice on how it affects you
  • Explains where your funds are invested, who the fund managers are and takes into account the type of companies you wish to invest in.

Your financial adviser will be registered with The Financial Conduct Authority and it’s worth reading their website to find out how they protect consumers, for example, if you are considering changing your financial adviser.

Ask about the guarantee your financial adviser gives about any advice he or she provides.

Financial advice is valuable in every situation and even more so when planning your retirement.

Legislation gives people much more freedom to manage their retirement pot than was possible when they first started paying into the scheme so it’s essential to compare your options with the help of a specialist.

According to research by the International Longevity Centre (‘The Value of Financial Advice’) people who receive financial advice accumulate significantly more pension wealth than those who don’t.

Upon retirement, your situation changes. You are considering pensions from a withdrawal point of view rather than a saving point of view – and you need to make smart decisions. Someone who will welcome your ideas on new investments and help you evaluate whether it is be the wisest option for you.

You don’t want to worry about changes in legislation or changes in tax rates. You want to be able to rely on someone who will advise you how you can use, preserve and pass your wealth on to your children.

There are two types of pension:

  1. Annuity – where you get a guaranteed income from your pension pot for the rest of your life
  2. Drawdown – which allows you to take some money out (drawdown) and leave some money invested.

The Government’s Pension Wise website is a good place to start gathering information to help you understand your pension pot and the options you may have. It helps you become aware of pension scams – Pension Wise and how to avoid getting caught out.

Most people have accumulated pension funds from various employers when they retire. If you can remember a job but not the details of your pension, then use the The Pension Tracing Service.  Get a pension statement from each provider and add the income to your budgeting spreadsheet or app.

Use all your ISA allowance to make the most of tax-free savings. Find out whether you would gain if you transferred for a better rate.

Your financial adviser will help you work out an investment and retirement strategy based on your new circumstances and review it every year (or more often) to make sure it’s relevant and beneficial.

How long will your savings and investments last? Assume longer and discuss with your financial adviser.

You’ll also need advice and help with:

  • Estate planning (how to pass your wealth to your children)
  • Preparing your tax return. A tax adviser, specialising in pensions and personal investments, can support you in making the right decisions at the right time of year.

Luxury retirement at Lakeshore

Come and visit the Arbor Living park homes at Lakeshore to find out how other retirees are loving life at Burton Waters, Lincoln.

Book a viewing by phone or send an email and we’ll call you back when it’s convenient for you.