Chartered Financial Adviser in Stamford: Planning for Retirement

As independent financial advisers in Stamford and the surrounding areas, we believe it is never too early to plan for your retirement and the earlier you start the process the more comfortable your retirement years will be; retirement planning should really begin as soon as you start work. A well prepared retirement plan will help you to ensure you receive a reasonable level of income in your retirement and are able to maintain the lifestyle to which you aspire.

Although the government now provides the “new” (single) state pension from 6th April 2016 (which is currently a maximum of £155.65 per week) most people will receive a lower amount and some people will receive nothing at all. Given this is only a very basic level of income, which will become payable at increasing ages, it is advisable to make your own arrangements.

One of the most common forms of saving for retirement is a pension, whether that is a workplace pension or a personal pension.

Another way to secure a good source of income in your retirement years is with an annuity. While recent changes to the rules of annuities and drawdown made them less attractive to some people, many people still prefer having the security of a guaranteed income for life.

Before purchasing an annuity, it is a good idea to seek advice from an independent financial adviser as investing in the wrong or uncompetitive annuity could result in a lower annual income. At Castlegate, our financial advisers in Stamford and across the East Midlands will work with you to ensure that you choose the best financial products for your retirement planning. It is also worth mentioning that the government has confirmed that as of April 2017 pensioners will have the option to sell their annuities for a lump sum.

What is an Annuity?

Annuities still remain popular as they guarantee a fixed income for the remainder of your years. An annuity is an insurance product that allows you to swap your pension savings for a guaranteed regular income for the rest of your life. The amount you will receive will depend on the rate offered by the annuity provider.

Typically, those with serious health problems are offered a higher rate than those who are likely to live longer. Other factors that can determine the amount you receive include your age, postcode, prevailing annuity rates, the type of annuity you buy and the size of your pension fund.

Should I Buy an Annuity?

If you are unsure if an annuity is the best financial product for your retirement, it is worth considering the following points and seeking advice from a financial adviser.

An annuity may be suitable for you if:

• You are aged 55 or over.
• You want a guaranteed income payable for your lifetime.
• You want your spouse to receive an income if you die before they do.
• You want to avoid your pension pot being subject to any investment risk.

An annuity may not be suitable for you if:

• You have a very short life expectancy
• You want to keep your money invested
• You want a single annuity but want to leave something behind

If you are planning for your retirement and looking for a financial adviser in Stamford or across the East Midlands, please do not hesitate to get in touch to receive advice on the most appropriate financial products for your personal circumstances.