Client
Portal
Menu

How to invest after retirement

Back to News & Views

Ensure your wealth is preserved for future generations

As you enter your golden years, the excitement of finally retiring may be tinged with some uncertainty. With the working days behind you, it's natural to wonder if you've amassed sufficient resources and how best to utilise them. 

Additionally, life can be unpredictable, so it's essential to be prepared for unforeseen circumstances. Investing for income after retirement can seem a daunting task, but it is by no means impossible. With professional advice, careful planning and continuous monitoring of your investments, you can ensure that your savings last as long as needed. 

To help you navigate this new chapter, here are some tips on investing after retirement to ensure your hard-earned savings continue to support you throughout your well-deserved rest.

Keep an eye on inflation

When it comes to investing after retirement, inflation should always be taken into account. Inflation reduces the purchasing power of money over time, so it's essential to consider this when making investment decisions. Investing in products such as index-linked annuities or government bonds can help protect against inflation risk and provide consistent income over the long term. 

Consider different asset classes

Investing in different asset classes can help diversify your portfolio and minimise risk. This could include equities, fixed income (such as bonds), property, cash or alternative assets. Different asset classes have varying levels of risk and returns, so it's essential to understand the risks associated with each before investing.

Don't forget about taxes

Taxation rules change regularly, so it's crucial to ensure you are up-to-date on the latest regulations to take advantage of potential tax breaks or benefits when investing after retirement.

Key points to consider

Income Tax: Depending on your total income, including pensions, investments and other sources, you may be liable to pay Income Tax. Keep track of your personal allowance, which is the income you can earn before paying Income Tax (other allowances are also available for specific income types such as dividends and savings income).

Capital Gains Tax (CGT): When you sell an investment or asset that has appreciated in value, you may be subject to CGT. However, there is an annual tax-free allowance for capital gains, so ensure you know the current threshold.

Dividend Tax: If you receive dividends from investments in shares, you'll need to consider dividend tax. There's a tax-free dividend allowance, but any dividends above this threshold will be taxed.

Inheritance Tax (IHT): Proper estate planning can help minimise the impact of IHT on your loved ones. Make sure you understand the current IHT threshold and consider strategies such as gifting assets or setting up trusts to reduce potential tax liabilities.

Pension Contributions: Even after retirement, you can still contribute to your pension and potentially receive tax relief on those contributions. This can be an effective way to grow your pension savings while reducing your overall tax liability.

Individual Savings Accounts (ISAs): Utilising ISAs allows you to invest in equities, bonds and other assets without being subject to Income Tax or CGT on the returns. Maximise your annual ISA allowance to take advantage of these tax benefits. 

Rebalance your portfolio regularly

Once you have created a well-diversified portfolio, reviewing and rebalancing it regularly is essential. This will help ensure that it remains aligned with your goals and the risk profile you are comfortable with.

Need advice about what to do with your money in retirement? 

Initiating your retirement planning and savings sooner is always advantageous. Your unique situation will influence the methods for saving and investing in retirement. By following these tips, retirees can ensure their investments last as long as needed. With careful planning and diligence, investing after retirement can be less intimidating and more successful. To discuss how we can help, don't hesitate to contact us.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE). 

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. 

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

Book your FREE, no obligation discussion today. Schedule Appointment

Sign Up to our mailing list - Receive regular news, tips and financial commentary from the Gemini Team.

Latest Tweets

Latest News

  • Money and divorce
    4 days ago

    Divorce is a complex process that often comes with various financial considerations, and preparing for a divorce is undoubtedly challenging, especially when it involves untangling your finances. The emotional strain can make it difficult to make clear-headed decisions, and the long-term consequences may not be immediately apparent.  [...]

  • Pension drawdown
    4 days ago

    Pension drawdown is a flexible way of taking income from your pension, introduced after the pension freedom rules in April 2015. Before that, the government limited how much income you could take from your pension unless you had other sources of income, and annuities were commonly used to provide a guaranteed income for life. [...]

  • Cost of care in later life
    4 days ago

    The costs of care in later life can vary greatly and depend on a multitude of factors. Notably, the type of care required, the individual's financial situation and their location within the UK play a significant role in determining these costs. [...]

  • Investment bonds
    2 weeks ago

    How bonds' structure and tax advantages can help you pass on wealth Investment bonds offer several benefits that some investors may be missing out on, and have become even more beneficial due to recent changes in tax regulations following the Chancellor’s decision to reduce the Capital Gains Tax (CGT) Allowance from £12,000 to £6,000 this year and to £3,000 in April 2024.  [...]

  • Missing out on unclaimed money that could be in your pocket?
    2 weeks ago

    £1.3 billion pension tax relief unclaimed by pension savers over a five-year period According to recent research, higher rate and additional rate taxpayers in the UK leave millions of pounds of pension tax relief unclaimed yearly[1]. This amounts to a staggering total of £1.3 billion over a five-year period. This unclaimed money could be in your pocket instead. [...]

  • Saving for the next generation
    2 weeks ago

    Taking proactive steps in securing your child’s or grandchild’s financial future Many parents and grandparents set aside money for the next generation to help with their financial needs. The rising cost of education, housing, and life in general, has created concerns about financial stability for future generations.  [...]

  • The importance of understanding tax-free pension withdrawals
    1 month ago

    Many over-55s are unaware that they can access 25% of their pension pot tax-free A surprising 43% of individuals over 55 need to be made aware that they can withdraw 25% of their pension pot tax-free, according to recent research[1]. Knowledge could lead to better decision-making when it comes to accessing pension savings. [...]

  • The Gender Pension Gap issue
    1 month ago

    73% of women make only minimum pension contributions, compared to 58% of men A significant difference in pension contributions between men and women has been revealed from a recent study[1], highlighting that women are more likely to pay the minimum required amount into their pensions under auto-enrolment. [...]

  • Price of adulthood
    1 month ago

    Financial responsibilities increase significantly after 25 Paying essentials such as utilities and council tax becomes a reality as young adults transition from student life to the workforce. The reality of financial responsibilities often accompanies the excitement of newfound independence during one's mid-twenties.  [...]

  • Lump sum vs regular contributions!
    1 month ago

    Choosing the right pension payment strategy When planning for your future, consider increasing your pension savings. But should you do this through a lump sum or by raising your regular contributions? In this article, we look at each option. [...]

  • Using your inheritance effectively
    1 month ago

    Making informed decisions about managing the funds wisely Inheriting wealth can be both a blessing and a challenge. It presents an opportunity to improve your financial security and accomplish your goals but it also involves managing the funds wisely. Cash flow modelling is essential to help you make informed decisions about using your inheritance effectively. [...]

  • The importance of understanding tax-free pension withdrawals
    1 month ago

    Many over-55s are unaware that they can access 25% of their pension pot tax-free A surprising 43% of individuals over 55 need to be made aware that they can withdraw 25% of their pension pot tax-free, according to recent research[1]. Knowledge could lead to better decision-making when it comes to accessing pension savings. [...]

Gemini Wealth Management Ltd is Authorised and regulated by The Financial Conduct Authority Registered in England & Wales No. 5919877 Registered Office: Gemini House, 71 Park Road, Sutton Coldfield, West Midlands B73 6BT The Financial Conduct Authority does not regulate tax and trust advice, will writing and some forms of buy to let mortgages. The guidance and/or advice contained in this website is subject to regulatory regime and is therefore restricted to those based in the UK.

Website by Mellow Marsh Software
© Gemini Wealth Management Ltd
Privacy Notice | Cookie Policy