HOW WE WORK WITH YOU
Do you have a final salary pension or defined benefit scheme?
Andy has been a loyal team player at the same company for many years, with him and his employer paying into his final salary scheme to provide a regular income in retirement. His partner also works part-time, and between them they’ve built up a comfortable home life, while still helping out their daughter in university. They are both looking forward to shifting down a gear in the next few years and would like to plan a life where they can relax and not have to worry about money. However, they’ve tried looking at their finances themselves and are unsure if what they have will be enough to maintain their lifestyle in the future.
BEGINNING THE JOURNEY
Helping you make the most of your pension
Very few people realise just what their pension pot can be worth in the hands of experienced, creative professionals. A company pension came with safety and security, but may not offer the flexibility to keep up with your desired lifestyle in the years to come. We want to identify your goals in life and help you to achieve them. Instead of being drip-fed an income that remains the same over time, we can help you to consider your options and can create a spread of investments that aim to increase in value over time and provide a flexible, stable income for you to live on for the rest of your life.
Sitting down and creating a concrete picture of where you would like to be in ten years’ time will give you a real sense of clarity and purpose to drive your financial decisions. What do you want your life to look like? What will you have, where will you live, and what will you be doing?
Before recommending investments to you, we always make sure your portfolio will match your risk profile. To us, it’s not about where you are on the scale that matters. It’s about presenting the right investments that suit your risk profile whilst also getting the results you need to reach your goals.
Pensions are just one of the options we can consider for investing your wealth. We can create a portfolio that spreads your money across investments, ISAs and pensions, balancing your income streams with tax-free allowances to form a considered, long-term strategy for your secure future.
With you in possession of the complete picture when it comes to your financial future, we can plot out exactly what you need to do to create your chosen lifestyle and how we can maintain it when you get there, allowing for life’s challenges and expenses along the way.
The case of 'How much is enough?'
Neil and Sue Builder worked hard, very hard. But then they enjoyed the lifestyle which they had created for themselves and their daughters Rebecca and Lucy.
Neil was 45 and he had a plan – his own financial plan. Because Neil hated three things: His mortgage. Pensions. But most of all, financial advisers!Read Neil & Sue's journey
The Case of Mr & Mrs 'Got-Too-Much'Read their story
The Case of Mr and Mrs '10 Years Younger'Read their story
The Case of 'Too Much Risk'Read their story
The Case of "Are We There Yet?"Read their story
Frequently Asked Questions
Want to know a little more?
Over time, inflation will erode the purchasing power of your money, such that if it rests in an average bank account it will steadily lose value year on year. The actual effect of inflation is not something most people can work out themselves, which is why they need accurate financial planning to work out a picture of the future. You may not be aware of the Rule Of 72. This is a method popularly used to estimate the number of years needed to double invested money at a given annual rate of return, but it can also be used to calculate how long it will take to halve the purchasing power of your money. If you divide 72 by the rate of inflation (assuming it stays constant), you will get the number of years until the value of your money is halved. For example, if inflation is 2%, then the purchasing power of your money will be halved in 36 years. So, much depends on what the inflation rate will be. Inflation is generally driven by the price of oil and the strength of the Pound so, using this as an indicator, you may be able to anticipate possible increases in the future rate of inflation.
Many company pension schemes are in serious deficit, and the liability of them promising to pay you a very long-term income is substantial. Therefore, some providers are prepared to offer you a considerable sum of money for you to take on the risk of generating your income for yourself. This can be great news for final salary pension-holders, who can make constructive use of these large sums to set themselves up for a comfortable retirement, if intelligently invested, the money from their pension buy-out could provide far more value to them than if they had simply drawn a set amount each month for the rest of their lives. For example, you could have a flexible income that can vary as your family needs change.
As you may have realised, most people are blissfully unaware of what their options are. Part of our job is to explain your situation, in language you can understand, and make you aware of the potential to unlock an alternative way of generating your income, where you are also in control of your destiny and realising your goals.
Much depends on the rules set out in your pension scheme. Typically, your husband, wife, civil partner or dependents will be entitled to 50% of your final salary pension.
Each pension scheme will have its own rules and stipulations. It’s vital you read and understand these. A final salary pension represents a lot of money; you should take proper advice to fully understand your options and what will be the best actions to take should the worst happen.