We are now being told that the young workers of today may well be working into their 70’s or 80’s or even longer before they retire. Irrespective of whether this proves true, what has not changed is the principle that long term planning for retirement is vital and not something that should be approached as a last minute afterthought.
This is even truer now where saving into pensions need only form a part of a much wider range of solutions on which we can advise. Individual Savings Accounts (ISA’s), property purchase, equity release, tax exempt saving (e.g. NS&I) and intergenerational funding can all provide a range of options towards supplying you with an income stream in the future either on full retirement or, perhaps, offer you the prospect of funding a career break or moving to part-time working.
Many of the above solutions are flexible enough to allow you to access funds for other purposes from time to time such as car purchases, debt repayment etc. where you might not always have other resources available during a time of need.
Some will draw comfort from the fact that monies saved into Registered Pension Schemes now will be available to them on retirement and ring-fenced in the meantime. For those in employment, the government Workplace Pensions Scheme will also have a role to play. However, we find that increasing numbers of clients are unwilling to commit significant long term savings funds into such Pensions but are more attracted by savings that can also provide funds for that rainy day or to give them other options on just how to spend their hard earned savings later in life.
Evans Hart will discuss all these savings options with you and make you aware of our range of investment options available to produce the best returns on those savings.
Pensions have been, and still remain, one of the most effective and tax efficient ways to save for retirement. However, increased life expectation and a general unwillingness of many to tie funds up for the long term mean that a more expansive, flexible and creative approach to pension planning is long overdue. Evans Hart can provide such an approach and their advisers will be happy to talk to you in detail on the options available either for you or, indeed for your children or grandchildren should you feel to be in the position to help financially in this area.
Pensions have changed and will continue to change. There are also many other ways to make sure that you have a contingency fund both for retirement and also for the period in between. Please get in touch if you would like a discussion on how we might help.