Within the next decade, nearly half of those people (44%) due to retire will require professional financial advice to help them make financial choices, according to research[1] published by insurer Zurich.
From greater freedom to flexibility and tax, the dramatic shift in the pensions landscape announced in last year’s Budget and the changes being introduced around Pensions Reform from 6 April this year has reinforced the need for trusted advice. From this date, retirees will have the freedom to do as much or as little as they want with their pension. More than half (59%) surveyed are planning to take a quarter of their pension pot as a lump sum and said they would reinvest it into a savings account or an New Individual Savings Account (NISA).
This is a complex area, and professional advice that you can trust is key, whether you are looking to make your income work as efficiently as possible or preserve your wealth.
The Budget 2014 Pensions Reform announcements and increased flexibility of accessing pension savings from 6 April this year will give people a great amount of personal control and freedom around how they manage their retirement. Making decisions without expert advice could lead to the risk of funds being depleted and exposing them to unnecessary tax.
Will the Pensions Reform impact on you?
If you have any concerns about how the Pensions Reform could impact on your situation, we can provide impartial views on these changes and analyse the opportunities they may bring. For further information, please contact us – we look forward to hearing from you.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.
Source data:
[1] Research carried out by Zurich involving over 900 respondents during July 2014.
