Pension planning used to be a relatively simple process. Employees tended to stay in the same career for many years. Then, on reaching retirement age, they would either receive a company pension or use their savings pot to buy an annuity that would deliver a set annual income.
It’s not so straightforward these days. Career changes are common and a person retiring at the age of 60 might have four decades to enjoy the fruits of their labour. That has implications for their financial arrangements. It’s also typical these days for spending in retirement to be higher in the earlier years, and then to reduce as items on the bucket list are gradually ticked off and a more sedentary lifestyle becomes the norm.
That trend has meant that the need for investment advice has also taken on a different dimension. In the past, it was more important to seek help in the run-up to stopping work in order to secure the best possible pension. Now, although it’s still important to seek pre-retirement advice – perhaps on combining a series of small pension pots – the crucial period comes in the years as a pensioner. Fulfilling ambitions when health permits could mean spending more initially, then having fewer financial needs later in life.
With so many moving parts – various pots, investment options and the need to plan for a lengthy retirement – pensions advice is more important now than ever. As a long-established firm of retirement planning specialists in Chester, we at Hartey Wealth Management can help you towards a prosperous future.