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It’s never too late to start planning for a financially healthy retirement – here’s what you should do

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Smith Eliot (2294575)
Smith Eliot (2294575)

As life expectancy increases, more of us than ever before are looking forward to a longer retirement – hopefully remaining in good health long enough to enjoy plenty of the years after giving up work.

But a longer retirement means making pension income go further, and that can be challenging. Expert financial advice is vital in ensuring that the money invested in your pension is used wisely, and the maximum financial benefits are achieved through careful planning.

There are some practical steps you can take and a personal wealth check will help ensure some, or all, of the following actions are in place:

Keep your tax bills to a minimum – how you take benefits from your pension can affect the amount of tax you pay.

Consider deferring your State Pension – retirees can defer their State Pension and then get a higher income when they claim it later on.

Advice is need though, as extra payment from deferring could be subject to tax.

Top up your pension – boost pension savings so that you can benefit from current rates of tax relief. This can be through topping up your State Pension, or an existing workplace or personal pension pot, or even starting a new one. The closer you are to retirement, the more inadvisable it is to boost a pension pot with risky high-yield investments, so financial advice is essential.

See if you qualify for higher annuity income – if you have health problems, you may qualify for an impaired life annuity, which offers much more income than a standard annuity.

Combine your pension pots – if you have several pension pots with different providers, it may be a good idea to combine them. Look at charges for drawing down payments, for instance. It might be better to draw one amount from a combined pension pot rather than paying charges on each withdrawal from a number of smaller pots.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

Smith Eliot (2294579)
Smith Eliot (2294579)

To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Smith Eliot Financial Management at either their Oakham office on 01572 759 or Stamford 01780 437 500 or email simone.harley@sjp.co.uk

The Partner Practice represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/products. The titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.

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