Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

Do I need a Financial Adviser for my pension?

Whether you are approaching retirement, are planning for your future or want to set up or review existing retirement planning strategies, our experienced advisers can help you calculate how big your retirement fund potentially needs to be and work with you to help achieve this.

Can I manage my pension myself?

Yes, you can manage your pension pot yourself; a popular type of pension, which allows you to choose your own investments, is a SIPP (Self-Invested Personal Pension). However, it is important to consider if you have enough time to research all of the investment options available to you and take the time to understand which investment options are suitable for your circumstances and your attitude to risk.

You also need to consider if you have time to rebalance your retirement portfolio regularly to help keep it on track to attain your financial goals. Typically, a pension pot has a long time to potentially grow, but as you near retirement, you are likely to need to limit the amount of higher-risk investments.

SIPPs do tend to have higher costs than a standard pension and generally only those who are fairly experienced at actively managing their investment should consider this type of investment.

Managing a pension yourself is time consuming and there are various tax implications that you need to navigate.

When should I consider getting pension advice?

Decisions made when planning for retirement can be irrevocable and could define how you live the rest of your life. There are numerous options available to you when deciding on how to take income from your pension, and it can be hard to know what option is suitable for your circumstances.

You should consider getting pension advice as you are approaching retirement. At Four Wealth Management, our Financial Advisers are experienced in taking the time to understand your financial situation and creating a retirement plan tailored to you. This will include how much you need to save into your pension per month while you are working, how you could take income from your pension pot and what age you may be able to retire.

When it comes to taking an income from your pension pot, pension advice can be invaluable. A Financial Adviser can calculate how much income you need from your pension per month to maintain the lifestyle you are accustomed to. A Financial Adviser will also work closely with you to help you not to run out of money in retirement. Your retirement could last over 20 years so it is important to create a retirement budget and analyse your expenditure before your retire.

Your Financial Adviser will also rebalance your pension portfolio regularly to help keep you on track for your dream retirement. Rebalancing your portfolio will also diversify your portfolio and keep it in line with your attitude to risk.

Arrange a Professional Review of your Pension

The earlier that you take Financial Advice, the more time your Financial Adviser has to work with you with the aim of growing your pension pot to help you achieve your financial goals. Starting retirement planning early could mean that you can retire earlier.

Do I need a Financial Adviser to start taking income from my pension?

You do not need a Financial Adviser in order to take income from your pension. However, Financial Advice could be invaluable as your Financial Adviser will work with you to determine the best option for your circumstances to take your income, for example through drawdown or an annuity or a combination of options. A Financial Adviser will also calculate how much income you can afford to take each month to help prevent you from outliving your pension pot.

Can I take a lump sum from my pension?

When making withdrawals from your pension, it is important to consider the tax implications. You can normally take a 25% tax-free lump sum from your pension. If you withdraw more than 25% as a lump sum, you will have to pay income tax on the excess amount of 40%. Withdrawing large lump sums from your pension also reduces the amount left for you to live on at retirement.

Make the most of your pension pot

A Financial Adviser can help you to make the most of your pension pot and provide you with peace of mind when it comes to retirement; contact us today to see if you can benefit from a tailored retirement plan.

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an advisor for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

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