Retirement Planning
What are you depending on to provide an income in your retirement?
- The state?
- Sale of your business?
- Property?
- Investments?
- Some form of pension provision?
In practice we tend to reply on a combination of the above.
Faith in the state pension is perhaps misplaced given that it has failed to keep up with earnings for many years. There are many who still regard their business as their pension. In practice however this can be the riskiest of strategies - it is heavily dependent on the market at the time we retire, and frequently underestimates just how dependent the business is on you.
Continuing to work to supplement a disappointing pension is an option but remains dependent on continuing good health and is not what many hoped for their lives.
The realist answer is to build up through our working lifetime a capital resource that can be drawn down later in the form of income and ad hoc capital sums.It is out of capital that we will pay for luxuries in retirement and also to replace items like cars.
With this strategy pensions can play an important part. After all, it is difficult to replicate the invaluable tax breaks with other forms of investment. Whilst pensions have received some bad publicity modern plans now represent better value and provide access to the widest range of investment options.
Alongside pensions, there are other useful investment vehicles designed to make the best use of available tax breaks - PEPs, ISAs, unit-trusts, investment trusts & bonds. All these cab be built into one holistic retirement plan to achieve your goals.
Contacts
For a free initial consultation please contact
- Duncan Orr
- Office: Seaford
- Tel: 01323 892549
- Email: Duncano@swindellsandgentry.co.uk
- Joe Fackler
- Office: Seaford
- Tel: 01323 892549
- Email: Joef@swindellsandgentry.co.uk