There have been several articles written about people being forced into early retirement due to Covid-19. The Office for National Statistics, combined with a study from provider LV, have suggested potentially 150,000 people aged 55 and above have been leaving the full-time workforce since the coronavirus crisis began.
As you near retirement, you may be feeling particularly concerned about job security and looking for reassurance and support when it comes to saving for the future. This is a great time to undertake a review of your retirement savings and retirement plan. There is no longer a fixed age when have to retire so understanding when and if you are financial secure to retire can be reassuring and remove financial stress.
If you are looking into retiring early or changes in your circumstances have forced you into considering early retirement then it is important you know and understand your options and the implications of your decisions.
You may have several different pensions, a redundancy payment, investments or property as available sources of income for your retirement. Understanding the advantages and disadvantages of each of them and how to maintain an income that will last your entire retirement can be difficult.
For example, a common misconception is you have to take all your tax-free cash when you want to take your pension benefits. This may be the case if you have a defined benefit or final salary pension. However, if you have a money purchase or defined contribution pension you may be able to access your pension flexibly. This is just one facet of retirement planning however there are many others, remember pensions can be complicated so speak to an expert.
We recommend consulting an independent financial adviser who will consider your circumstances, your plans and your wishes when providing a Retirement Planning Report. We also believe in being honest and making you aware if you are not in a position to retire early or your income requirements are too high. We can then work together to plan a sustainable retirement.
Retirement planning can be hard to understand. If you are in any doubt about what to do, it is important to talk to an independent financial adviser before making any major decisions.
We believe our free retirement planning review can help answer some of these important questions
For further information, please contact Maxwell Financial Planning Ltd on – 0151-236-7838.