Why might you need pension advice?

Huynh NguyenApril 1, 2022Last Updated: August 25, 2024

Thinking ahead to your retirement can be an exciting process, as you consider all the things you can do in your spare time. Perhaps you’d like to visit a country on your bucket list, or start a new and exciting hobby.

Despite all the fun that can be had in retirement, one common mistake is underestimating the income you’ll need. By planning ahead, you can ensure that your finances are sufficient enough to suit your lifestyle.

An important part of this financial planning can involve professional pension advice. So, with this in mind, we’ll explore the reasons why you might need a pension adviser, and how they can help secure your financial future.

What is pension advice?

Pension advice can help you to feel more confident when making important decisions about your pension and retirement. A pensions expert can help you formulate a plan to evaluate your current expenditure and likely out-goings in retirement.

Pension financial planning can help you save for your retirement in the most tax-efficient way, make use of the available allowances, and understand how to withdraw your income effectively.

In fact, according to Close Brothers Asset Management:

“…[a] retirement planning service can help you build the wealth you need, to achieve the retirement you deserve.

“It is important to structure your wealth in a way that ensures you have sufficient funds, without having to compromise on the way you live your life prior to retirement.”

Any investment strategy comes with its risks, and the value of investments can go down as well as up. You may get back less than you invested. This article is not intended to be an offer or solicitation to buy or sell securities, nor does it constitute a personal recommendation. Furthermore, any tax benefits will depend on your personal tax position and rules are subject to change.

With so many pension options now available, a pension adviser can help you to navigate this territory and ensure you’re on the right track to reach your retirement goals.

What are the benefits of pension financial advice?

Whatever your age or stage in life, there is much to consider when planning for your retirement. However, pension advice from a professional can provide many advantages, such as:

Keeping up-to-date with the latest changes in pension legislation and adjusting your retirement plan accordingly.
Matching your investments to your personal circumstances and level of risk
Ensuring you have the best plan in place for you, with the correct investment options for your financial situation

A bespoke pension plan from an expert can help minimise the risk of losing capital and ensure you’re saving and withdrawing your income in a tax-efficient way.

When can a pension adviser help?

Taking the leap into retirement can be daunting. However, in certain circumstances, a pension adviser is worth considering, because of all the benefits they provide.

These can include when you are:

Withdrawing from your retirement income

A pension adviser can help you to evaluate and adjust your income and investment strategy, as your circumstances change or when you reach retirement age. For example, if you have a defined contribution (DC) pension, this allows you to regularly withdraw small amounts of your pension pot, whilst keeping a sufficient amount of capital invested.

Purchasing an annuity

You can receive valuable advice when it comes to purchasing an annuity, as this can be a complex option to consider. Through pension financial advice, your situation in its entirety is evaluated, to ensure you have the most suitable annuity for you, with the best rate.

Deciding your investments

Depending on your circumstances and stage in life, your financial adviser can plan and review your investments so they match your goals and risk attitude. Again, these can be adjusted over time, through their advice, to maintain your retirement plan.

Planning ahead for inheritance or passing on your estate

Estate and inheritance planning can be quite stressful, so a financial adviser aims to ease the process. They can help to formulate a plan for your assets, pensions and investments for when you’re no longer around. With pension advice, you can rest assured you’re starting in the right place, when it comes to inheritance planning, and taking the right path for you.

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With the help of a pension adviser, you can take into consideration the variety of factors which can impact your retirement and the lifestyle you wish to live. Together, you can explore the different options, and create the best plan for your individual circumstances.