Taking action
In today’s financial climate, your investments will need time to grow, so whether you choose to focus on pension savings, alternative savings and investment strategies, or a combination of both, make sure you start planning ahead of time. There are significant changes proposed to the rules at retirement for those in defined contribution schemes. If enacted, these changes will open up the possibility of taking flexible benefits at retirement from age 55 (scheme rules permitting) up to and including 100% withdrawal of the accumulated pension savings at retirement (with an income tax charge at marginal rates). There is little doubt that pension savings should start as soon as possible, but for those looking forward to retirement in the near future, taking the above changes into account may give greater flexibility over the pension pot!Finance for the future
Planning is a continuous process, and your financial plans should be monitored regularly with any necessary adjustments being made to reflect changes in your circumstances. Careful planning now can help to keep you on the path to financial success.A realistic plan
Putting together a realistic plan can be a balancing act between your head (financially prudent strategies) and your heart (emotionally acceptable thresholds). You need to bridge the gap between what you can expect financially and what you dream of achieving. Try setting a number of short, medium and long-term goals and prioritise them within each category, in order to meet your objectives. Being realistic about your objectives is important when putting together any financial plan. We can help you with this process.Some key financial goals
- accumulate a sizeable estate to pass on to your heirs
- increase the assets going to your heirs by using various estate planning techniques, perhaps including a lifetime gifts strategy
- tie in charitable aims with your own family goals
- raise sufficient wealth to buy a business, a holiday home, etc
- develop an investment plan that may provide a hedge against market fluctuations and inflation
- be able to retire comfortably
- have sufficient funds and insurance cover in the event of serious illness or loss
- minimise taxes on income and capital.