Post Retirement Fund Management
So you’ve reached retirement and you want to ensure that your wealth is going to last longer and do more?
After saving for many years during your working life, whether it be a defined benefit pension scheme or perhaps a personal pension or even a combination of both, deciding what to do with your retirement income is not always given the thought it deserves.
As with any point in a person’s adult life, drawing up a budget for retirement is essential, and it is prudent to keep this budget under regular review. Most people at the age of retirement have paid off their mortgages most of the larger loans that members of society take on whilst working full time. The spending patterns of mature adults tend to be different than those of the younger generation.
Budget preparation is useful to predict changes and provide estimates of your income and spending, ultimately providing a person with greater control over their situation. Forecast budgets can quickly show gaps that will enable alterations to be made ahead of potential problems.
Can I earn income during retirement?
Just because a person has retired from their main occupation and maybe collecting a pension does not mean that they are not entitled to fill a position of employment elsewhere. The main point to consider is that every person will subject to tax legislation and the associated allowances thereof. A person can take their monthly pension and earn income from a job, they will of course pay tax on money earned over the personal allowance, that being said, it is permissible to pay some of this income into another pension scheme (which is of course tax free). Doing this allows this money to grow over time and can be claimed as an additional income when required later on.
The state pension can be deferred by an individual, the longer that a person declines to take it, the more the fund grows and the higher the monthly income available from it will be.
Reviewing savings and investments on a regular basis
Where possible, the forming of a 3-month spending money cushion is recommended by most industry experts, this amount can provide you with a safety net should an emergency arise. Any additional savings and investments should be reviewed on a regular basis to ensure that the money is working as hard as possible.
What can Credencis do for clients living in retirement?
As the markets are in constant flux, the rates and deals being offered are also changing. Remaining stagnant with your savings and investments is an almost certain way for individuals to lose money. A sad fact is that banks, investment product providers and building societies often count on customers doing nothing at all, a stance that is morally questionable.
With a regular review (minimum annual appraisal) more can be made from personal tax allowances. Before terms are due for renewal, Credencis perform checks to see what is changing in the markets and what better options are available, thus allowing clients to switch ahead before the next cycle locks in.
When the unexpected happens
Nothing is 100% predictable in the financial aspect of our lives, windfalls can arrive, interest rates rise and fall as economies contract or thrive. An individual may have to give up working due to health or care commitments, or perhaps be laid off from their employment. Any of these factors be they positive or negative have an effect on personal finances. Credencis support clients through these events by reacting quickly and by being ready to make the changes necessary to protect or prosper the funds of the customer.
Deciding on the changes to be made through the experienced eyes of Credencis
Information on where to move accounts to obtain better deals and make use of tax efficient schemes/products
Strong advice on the best use of capital gains allowance when dealing with the sales of shares and property
Spreading the risk and balance between elements of a client’s investment portfolio to make sure more money is saved via lesser fees and that higher returns are made through better interest rates.
Making your money do more for when it’s time to go
One day, and may that day be a far and distant thing, it will be time for something to happen to the remaining funds and investments at the end of our lives. Most clients Credencis work with want to make sure that their dependents can receive the maximum value that their portfolio can provide. Through diligent planning and wise decision, a customer’s money and assets will be able to aid their loved ones further after they have gone.
Need advice? We can help.
Sadly quite a number of retired peoples are throwing away a lot of money through underperforming investments, savings accounts and undermanaged pension pots.