Pensions and Retirement Planning

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Pensions and retirement planning…..focus on your future now…..and enjoy your retirement.

Traditionally, most people have used a retirement pension savings plan to save for their retirement. In some cases this has succeeded in providing the right amount of income at the point of retirement. However, for many people the traditional retirement pension plan has not achieved their aims.

This is partly due to the fact the markets have been volatile for a number of years and are now low, just when many people are retiring. It is also partly due to low yields on government bonds (gilts) which in the main are used to provide the income. The current low interest rate environment does not help those who are retiring.

Your options:

At Sterling we have a ‘down to earth’ approach to our customers retirement plans. We believe that the traditional pension has a place in that approach. We do not, however, believe that our customers should rely entirely on a pension savings plan for their total retirement income.

We would suggest that the pension savings plan should play a part in your overall retirement savings strategy.

You could for example use some or all of the following:

  • own pension savings plan
  • employer funded pension savings plan
  • lump sum payments into a pension plan
  • long term savings ISA
  • lump sum investments
  • buy to let property
  • Self invested pension (SIIP)

We believe the key to a successful retirement strategy is to have several different routes, which when combined provide adequate retirement income. Simply put, we don’t think that ‘putting all your eggs in one pension basket’ is a good idea.

It is clear, however, that whatever route is chosen……most people do not save enough for their retirement. The key, we feel, is the length of time over which you save. A smaller amount over a longer period is easier to bear and would normally provide a better result than a seemingly larger amount  in the last few years before retirement.

Talk to us about your options, we will be happy to help.

Some common problems:

It is certainly true that many people have traditional pensions and retirement  plans which are underperforming. The financial services industry is contracting and many of the well known names and brands have now disappeared. This has resulted in many billions of pounds being trapped in ‘zombie’ style pension funds returning very poor growth indeed. Transferring such a pension to an ‘open’ pension provider with low charge based funds could improve the performance which could then improve retirement income.

Many of you will have a number of small pension pots which in themselves are relatively small. They may incur charges which are disproportionate to their size. It may be worthwhile combining them into one much larger fund and investing it with a new pension provider with very low charges. The affect of lower costs can often dramatically improve the growth prospects and produce a larger pension ‘pot’ at retirement, which in turn could produce more retirement income.

We would of course need to evaluate these alternatives on a ‘person to person’ and ‘pension fund to pension fund’ basis. If this idea appeals to you, talk to us about your own circumstances.

Talk to us:

The strong message from the Sterling team is that you should save for your retirement plans by making provision during your working life. How you choose to do that is personal choice. Normally, a combination of techniques will achieve the desired result.

As a business, we which specialise in providing long term pension advice. We are happy to discuss your retirement plans with you.

Talk to us about what you want for your retirement . We will happily explain to you just how we would approach your requirements. Take advantage of our free, no obligation, pensions and retirement planning consultation. We think you will like our straightforward approach.

Complete the form at the top right of this page for a call-back or e-mail and one of our financial advisers will make contact with you. Alternatively visit our our contact page.

Alternatively, call us on 01482 863127