No matter what stage of life you are at, getting advice for your retirement dreams and goals should be at the top of any to-do list. It is never too early or late to take advice on pensions and your retirement finances.
This guide discusses why taking professional advice on your pensions and retirement plans is essential.
Why Specialised Help is Essential when Planning for your Retirement
Unless you are a financial wizard that understands the complexities of the modern financial marketplace and pension legislation, then getting the right pension advice is essential.
Not so long ago, planning for retirement used to be a simple procedure. A workplace pension combined with a state pension and whatever savings and investments you could muster was the standard retirement path.
This involved very little personal input, and for most people, this resulted in an adequate standard of living when they retired. These days, the system is far more complex, with much more onus placed on the individual to make their own retirement plans.
Pension advice from advisors that understand the vagaries of the financial markets, pension legislation and have a deep knowledge of the myriad of options available to maximise your investments is critical.
What questions should I ask a pension advisor?
Good financial planners will understand precisely what advice you require from them. However, it is still useful to understand the type of question that you should ask your pension advisor. This is a useful exercise as understanding this allows you to gauge the quality of the advice you receive and also gives you a deeper understanding of the factors involved in planning for retirement.
A few of the basic questions are listed below:
- What level of risk would my pension investments face?
- Is there tax relief on my pension contributions?
- Will my pension income be taxed?
- How much should I be contributing?
- Can I lose my pension?
- Am I paying the right amount to achieve my retirement goals?
Many of the questions asked at this stage have answers that are largely dependent on the status of the person asking the questions. This is where a good financial planner can make all the difference.
Lifestyle Financial Planning is one area that people are increasingly turning to for retirement planning. This method doesn’t take a broad-brush approach to retirement planning. Instead, it bases pension and retirement plans based on an individual’s circumstances, including their current lifestyle aims and retirement plans.
As such, this method involves answering such questions in depth and understanding precisely the individual’s needs and goals. This is a highly tailored approach to financial planning that defines plans and current expectations and builds a retirement plan based on these details.
Top Reasons for using a Financial Adviser
The complexities of retirement planning are above the heads of most laypeople. This is the foremost reason for using a financial advisor. However, breaking this point down into its component parts helps to illustrate the importance of retirement plans.
Here are our top reasons for using a financial advisor:
1. Help plan savings and spendings – A financial advisor can help plan your spending and saving to build your retirement pot as efficiently as possible.
2. Protect your family – Making sure your family is always financially secure no matter what the circumstances are is a critical aspect.
3. Help to meet your investment goals – A financial advisor will help you to understand the performance of your investments and how to make sure they match your expectations as closely as possible.
4. Draw up a retirement plan – Retirement plans that account for your planned retirement age, retirement lifestyle goals, and how to achieve them are an essential service.
5. Maximise the return from your assets – By building an understanding of your “risk tolerance”, a financial advisor can build a diverse investment portfolio that spreads your investment in a balanced manner to maximise the returns you achieve.
6. Ongoing Assessment – Financial plans need to be flexible enough to adapt as circumstances change. This could be personal circumstances, legislative, or to cope with changes in the economy. A lifestyle financial planner will ensure that your retirement plans stay on track regardless of the circumstances.
Preparing for your retirement is one of life’s big tasks. Such is the complexity of the ever-changing pension legislation and the demands of understanding the best investment policy. A financial advisor is essential to make sure your retirement dreams are met.
At Financial Architects, our lifestyle financial planning approach means you have the peace of mind that comes from knowing you have experienced professionals working for you. Our balanced approach takes your current lifestyle expectations and future retirement plans and tailors a financial plan that will help you achieve your dreams.
Why not contact us today and find out more about our lifestyle financial planning.