Clifford Osborne’s Independent Financial Advisors (IFA) offer free pension expert advice on Early Retirement and Retirement Planning throughout East Sussex, including in Eastbourne, Lewes, Seaford, Bexhill, Hastings, Newhaven, Crowborough, Uckfield, Brighton, Hove and Tunbridge Wells. To arrange a free initial discussion at your home, workplace or our offices contact us today.
When looking at early retirement, there are some lucky enough to have an employer-funded or generous company pension scheme and a large part of their required retirement income potentially could be generated that way.
For most people however, the bulk of the money they will have to spend when they choose to stop working will come from their own private savings and investments. Whether using ISAs, Offshore Bonds, a property portfolio, Unit Trust, VCT, EIS, OEICS, cash accounts or indeed pension contracts such as SIPPS, the onus is now on the individual to accumulate a large enough savings pot with which to generate or convert into a secure lifetime income.
Modern personal pension plans are now low charging very useful and tax incentivised structures that can be used to save up money far more quickly that non-incentivised structures due to the extra inputs from HMRC.
Pensions remain one of the most efficient but at the same time most complex ways to save. You no longer have to save in old insurance company schemes with potential high charges and poor choice and you now have far more flexibility to use the pension rules to your advantage. We can use a pension wrapper to hold a portfolio of investments which is then sheltered from tax allowing funds to grow extremely efficiently with the added benefit of being sheltered from inheritance tax, therefore helpful for lifetime and generational planning.
Careful planning to ensure that you are saving enough on a monthly or annual basis is critical. Regular reviews to assess investment returns, inflation, charges, annuity rates and volatility are paramount to keep your target retirement income on track.