It’s never too early
or too late to start
planning your retirement

Personal pensions are one of the most common ways that people financially prepare for their later years. A selection of pension products is available on the UK market, offering different pros and cons.

Some of the most common options include:

• Defined benefit pensions - this type of pension pays out an amount based on your contributions and the rate of annual inflation, which continues until you pass away. They’re usually workplace pensions. 
• Defined contribution pensions - this type of pension invests the money put in to try and increase the value of the pension.  
• Self-invested personal pension (SIPP) - this type of pension is similar to a defined contribution pension but gives the individual greater control over where their pension contributions are invested.

A wide range of investment products and investment vehicles can be used to increase long-term wealth. Each investment opportunity comes with a degree of risk, which should always be managed in line with personal finances and preferences. Risk can be mitigated to a degree through diversification.

Some of the common investment opportunities in the UK are:

• Stocks
• Shares
• Bonds
• Unit trusts
• Property

Retirement planning is a branch of financial planning that focuses on utilising pension products and investment opportunities to fund a preferred lifestyle during retirement. Retirement planning is typically most effective the earlier it begins and when it’s continually monitored and adjusted in line with needs and market conditions.

Retirement planning often zones in on specific pension options as retirement gets closer. For example, your pension pot may be used to purchase an annuity, which gives you a regular income for a fixed period or even until you die. Alternatively, you might choose to take your defined contribution or SIPP pension pot as an income drawdown whereby you receive some of your money while the remainder stays invested to attempt to maximise returns.

Pensions and investments can be complicated products. Using a financial adviser to provide a personal assessment of your needs can be highly beneficial.

They will explain all your suitable options so you make informed decisions that can maximise wealth in later life. They can also help you understand how decisions may have an impact on tax and inheritance.

Start planning for your retirement with the specialist support of a Taylor James financial adviser. Our retirement planning service covers a wide range of pension and investment opportunities, with solutions only ever recommended based on your profile and risk tolerance. Call now for an initial discussion.