Pensions Freedoms have presented UK savers with far more flexibility over how they take their pension pots at age 55 and beyond.
But with increasing longevity, the uncertainty over how much the overburdened welfare state will be able to look after the elderly, particularly those needing long-term care, and the government making incremental changes to pensions taxation and the state pension age, people’s workplace pension pots will need to last much longer than many expect.
How can one invest to ensure the fund lasts for the length of retirement, if clients need it to, and how can advisers help mitigate risks such as market and sequencing risk?
You also have to address that perennial problem of suitability, given people’s needs will change over the course of their lifetime?
And as with all advice, every client has different needs, objectives, desires and opinions. Not only that, but you have to address the desire to take their pension pot (or at least some of it) as soon as they can, leaving themselves short when they eventually retire some five or ten years later.
Don’t be afraid to give us a call and get proper advice before taking the plunge. Yes it will cost you a fee but it could be worth it in the long run.