Pensions are an essential part of a diverse, tax efficient retirement planning strategy but for most people pensions are simply a mystery.
It is somewhat ironic that “The Pension Freedom Act” made the complexity worse by giving consumers even more choice than ever before.
Pensions are now at their lowest cost base whilst offering the most diverse investment and retirement options. “Pay less get more” is a scenario that we all like to hear. ‘Mini’ prices for a top of the range ‘Rolls Royce’ is an ideal situation for anyone.
However, this all comes with a wealth warning. Trying to muddle through each of your plans, selecting the right asset allocation and the best funds without the help of an expert eye, to navigate the latest software solutions available can be a costly exercise, yielding a less than perfect outcome.
Enthusiastic Pension DIY’ers who choose to self-advise when drawing benefits in retirement come with great risk. The choices and decisions made are irreversible and can have dire consequences when the wrong path is chosen. It is without a doubt the highest ignorance tax you will ever pay for probably the most important decisions in your life.
“In English” financial advice from a qualified regulated Independent Financial Adviser is the only sensible route forward. Go left not right on the retirement journey where the best options are exercised on your behalf in a tax efficient fashion.
Don’t forget your State Pension benefits for you and your spouse. Most people do! The following link allows you to complete a quick and simple online forecast:
The DWP also provide a Pension Tracing Service for all of those places you worked in yesteryear and can’t remember or find that pension you had / can’t remember having. There are billions of £’s of unclaimed pension benefits out there.