What does your retirement look like? Do you picture yourself on a beach sipping ice cold lemonade watching the waves lapping gently on the shore? Perhaps a round of golf at least four times per week? These could be several of many appealing thoughts to someone who is currently flogging themselves into the ground during their working lives.

But what is the reality? What will your retirement actually be? What are you working for? It could all look very different. Could retirement in fact be a part-time job with Tescos to bridge the gap between your income that you need to live on and the income you will actually receive from your Pensions?

The Government has announced to extend the working careers of both men and women. From April 2024 the following changes will be gradually implemented:-

• State Pension Age for men and women will increase 65 to 66 from April 2024 to April 2026
• State Pension Age for men and women will increase 66 to 67 from April 2034 to April 2036
• State Pension Age for men and women will increase 67 to 68 from April 2044 to April 2046

The age you can claim your State Pension will be determined by when you were born. So anyone born since April 1978 will not be eligible for their State Pension until they are 68 years old.

Why is this? The reason is due to the extended lives we now lead and the realistic possibility of people living in excess of 30 years retired. Simple mathematics - people are living longer and hence the cost for providing the necessary income in retirement is becoming greater. It is quite possible some people will live longer retired than actually working during their life.

There are many options available to my clients to plan their retirement successfully, rather than just hope there is enough money in their pension arrangements.

Existing Pension Plans

During a working life many people will have accrued pensions with either previous employers' occupational pension schemes or through their own private pension arrangements. It is not unusual for a client to have five or six existing pension arrangements obtained throughout their working lives. Many of these pensions have either never been reviewed or reviewed for decades in some cases.

But what are they worth? Where are they invested? Are they managed well by the Pension Fund Managers or the Pension Scheme Trustees? Are they expensive and what are the options that you have with these schemes at retirement? What risks are being taken with these pensions?

Sometimes it can be reassuring to be told the schemes are satisfactory and they are on target to help you achieve that lifestyle you hoped for in retirement.

But what if the pensions are not efficient or cost effective? What should you do?

We have found over many years that we have practiced that most clients are unaware to all the options available to them regarding their pensions. We have established that many clients are ignorant of many of the choices they have before and also when they actually retire. These can include choices of Impaired Life Annuities, Transfer Values, Unsecured Pensions, Phased Retirement or Open Market Options

Making an informed decision about your pensions is essential

We have been amazed over the years how many people chase the latest rates with their savings and investments. Many will move their entire savings to another institution to gain an extra 1% return per annum. The same people can totally overlook what is being lost each year in their own pension funds either through higher charging contracts and /or poor fund performance. It is still their money!!! (It just does not seem like it!). Losing 1% per annum through high charges or poor performance can lose the impact that could be gaining 1% through growth on their pension fund?

£100 Pension fund loses 20% in charges and fund performance- therefore the net value is £80

For that £80 Pension fund to recover to the original £100 it would have to grow by 25%

Charges as well as fund performance should not be overlooked. It is quite easy to establish the benefits of growth on a pension fund. It is not quite so easy to see the damage caused by excessive charges

Pensions and Divorce

Today we live in a society of pace, choice and change. Sadly part of this Modern Society choose to end their marriage and apt for divorce. Often this leads to the splitting of the financial assets acquired during the marital lifetime which traditionally involves splitting the savings and the value of the matrimonial home.

Often overlooked during this unfortunate event are the assets that are held in the pension scheme. These assets too have values that can be traded or offset in the event of a divorce. Thorough advice is required too in this aspect of a divorce on the options available to both partners divorcing. It is recommended Independent Financial Advice is sought over such matters so that neither party is left unfairly disadvantaged at what can be a very difficult time

Belper Independent Financial Solutions can help your retirement planning. We offer clients an initial obligation-free meeting without cost to you when we can sit and discuss your own retirement arrangements. Please take the opportunity to discuss your retirement plans and contact us via the "Contact Us" page . >>>

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NO INVESTMENT DECISION SHOULD BE TAKEN BASED UPON THE CONTENT OF THIS SITE. ALWAYS TAKE FULL ADVICE FIRST.

THE REGULATIONS GOVERNING TAX RATES AND INVESTMENTS MAY CHANGE IN THE FUTURE.

PAST PERFORMANCE OF AN INVESTMENT IS NO GUIDE TO ITS PERFORMANCE IN THE FUTURE. RISK CAN BE BROUGHT ABOUT BY PERFORMANCE OF WORLD MARKETS, INTEREST RATES, TAXES ON INCOME AND CAPITAL AND FOREIGN EXCHANGE RATES. YOU MAY NOT NECESSARILY GET BACK ANY OF THE AMOUNT YOU INVESTED. FUNDS THAT INVEST IN SMALLER COMPANIES' SHARES TAKE ON THE RISK THAT THOSE SHARES CAN BE RELATIVELY ILLIQUID; MEANING THEY ARE HARD TO TRADE, WHICH MEANS THE FUNDS THEMSELVES CARRY A HIGHER RISK"