Dedicated Retirement Planning
If you are banking on the government pensions regime to provide for you in your retirement, or if you had planned your retirement finances more than one year ago, you may find your previous retirement planning now needs updating. Otherwise, your retirement may be less enjoyable than it should be.
It pays to plan ahead for retirement and to regularly re-examine your investment choices. If you have a company pension, personal pension, stakeholder pension or service pension you need to consider how well these and your other investments will work together to provide for your retirement.
The decisions you make now will affect your income levels and how comfortable you may be in retirement.
Pension options
When you choose to take your pension benefits, you can receive a tax free lump sum (to provide a retirement pension capital), usually up to 25% of your pension fund. The remaining fund must be used to provide a pension income through either income withdrawal (also known as income drawdown) or through an annuity. An annuity would be dependent on the prevailing retirement pension annuity rates.
If you choose not to take any tax free lump sum, or only part of your entitlement, you will be able to receive a higher pension income. You can take pension benefits in full from the entire pension fund or choose to take benefits gradually through partial income withdrawal or phased retirement.
Taking pension benefits gradually may suit you if you have other income sources such as investments or the opportunity to continue working, perhaps choosing to gradually reduce your hours. Part of your pension fund will be used to provide income whilst the remainder of your funds remain invested. Income withdrawal also allows greater flexibility than an annuity by allowing income levels to be varied (subject to prescribed limits) to reflect your changing needs.
Pension advice from Gemini Wealth Management
Independent Financial Advisers (IFAs) are the only type of financial advisers in the UK who are able to select from all the products available in the marketplace. The adviser must take into account any proposed product's; benefits; charges & prices; flexibility; service and financial strength. Making sure you get the right product for your individual needs and in the case of pensions to provide a thorough pension explanation.
Gemini clients receive independent financial advice which is tailored to their personal needs and expectations. This enables us to take into account other factors that can impact your financial planning, pension and investment decisions. These personal factors may include; bereavement (widow, widower); relationship status (single person, married, gay, lesbian, partner, divorced); incapacity (illness, disability, sickness); relations (dependants, family, children, elder care); social security (allowance, benefits, tax credits); personal finance issues (bankruptcy, insolvency, criminal record, bad credit rating); investments (stocks, shares, ISA, cash, funds, bonds, equity, property, gold etc).
We recognise that our clients are at the heart of our business and that we can only secure trust and loyalty from our clients by continually providing first class pension and investment advice and by delivering unrivalled personal care.
For more information on planning retirement pensions please see:
Our seminar section for: Seminars on planning for retirement
Our downloads section for: Pension Guide
To discuss your retirement plans further please call us on the number at the top of the page or send us an email using our Contact Us page.
Financial Planning for Retirement Q&A
What kind of people do you advise, is it just the rich?
Gemini WM can help anyone who wants to plan for their financial future, not just the rich. We can provide investment and pension advice to people from all walks of life including: teachers, NHS staff, professionals, small business owners (SMEs), armed forces personnel (army, navy, air force), factory and commercial workers, shop owners, company executives, directors, accountants, police, dentists, doctors, solicitors, restaurant owners and housewives.
When can I start to take my benefits?
You can take benefits Currently any tax free lump sum must be taken before age 77.
New rules will come into effect in April 2011 concerning changes announced in June 2010 Budget. The details of thse new rules are not yet known.
How much risk is my fund exposed to?
If you choose an annuity, your income level is guaranteed for either your lifetime or the guaranteed period and is not exposed to rises and falls in the value of the investments. Through income withdrawal, your remaining pension fund is invested as you choose. The remaining pension fund will therefore be exposed to rises and falls in the value of the investments.
How can I take my benefits gradually?
Your pension fund is split into a number of arrangements and you can take benefits from some arrangements to provide the level of benefits you require. Protected rights benefits are held in one arrangement. Any unused arrangements can remain invested until you need to take the benefits as a tax free lump sum and/or a pension income. You can take your pension benefits gradually using an annuity, phased retirement, or through income withdrawal (income drawdown) up to age 77, through phased income withdrawal. For more information about income withdrawal please see our dedicated Income Drawdown page.
What are short term annuities?
Short term annuities (also referred to as 'limited term retirement pension annuity') allow you to use part of your pension fund to buy an annuity lasting up to five years. The rest of your pension fund remains invested. When that five year term is up, you can buy another short term annuity lasting up to five years. Any short term annuity must finish by the time you reach 75.
Buying a short term annuity means you can put off buying a lifetime annuity. You may be tempted to do this if you fear you will be locked into a low annuity rate and are hoping that annuity rates might improve at a later stage. However, there is a risk attached as there is no guarantee that annuity rates will rise in future - they could fall.
What products can be used with income drawdown?
The following pension products can be reviewed when income drawdown (withdrawal) is being considered:
- Stakeholder Pension Plan
- Personal Pension Plan
- Occupational Pension Schemes
- The Self-invested Personal Pension (SIPP)
- Retirement Annuity Contract
- Executive Pension Plan (EPP) Section 32
Gemini WM provides dedicated retirement planning, pension, financial and investment advice so that you can have peace of mind and enjoy your retirement.
