Pensions Bradford, West Yorkshire
The value of pensions can fall as well as rise. You may get back less than you invested.
One of the biggest lifestyle changes you will experience is that of Retirement; and this makes it even more critical to plan. Our experts are here to talk you through all your options and make the decision making process easy for you.
Pensions are one of the most tax efficient ways of saving for retirement. From looking to start a pension, to re-evaluating your existing pensions, or you wish to start accessing your pensions; receiving expert financial advice would help you make the right decision at the right time.
Having financial security in retirement is a key concern for many people, and one that is likely to turn in to reality without effective planning.
Retirement Planning Bradford
There are now far more flexibilities with pensions since April 2015 and a well-integrated financial plan could have a major positive impact to how these new changes work to your advantage. Our experts are here every step of the way, guiding you in the direction that is right for you.
Many people have existing personal pension plans as well as former employer pension plans and often it is the case that these plans have never been reviewed. Nothing is ever setting stone in life and the same goes with your circumstances. Our experts can review your plans to ensure they are still suitable for you and your circumstances. If not, we can work with you to find the right suitable solution and ensure it stays suitable.
A plan is about bringing the future in to the present and working on it now. Our service is individually tailored to your needs and objectives. We will first conduct a full detailed review of your existing pension arrangements before advising on the next suitable steps.
Final Salary Pensions Bradford
Regarded as “gold-plated” but what are Final Salary Pensions? What are the advantages and disadvantages of these types of pensions? What options are available with these final salary pensions? These are just a small portion of questions many people have when it comes to Final Salary Pensions.
Sometimes referred to as Defined Benefit pensions, these offer a promised guaranteed income at retirement. The income amount usually increases each year to keep up with inflation.
Decline in Final Salary Pension
If these schemes provide a guaranteed income in retirement with inflation increases, why are such schemes becoming uncommon? Most final salary schemes have now closed to new members and only public sector and some of the largest employers still offer them.
One key factor to the decline is because of affordability. In simple terms, it has become increasingly expensive for employers to provide a life long inflation linked income.
The short-term financial hit comes in the form of a Cash Equivalent Transfer Value (CETV). This is a lump sum of money your final salary pension offers you to transfer out. Should you decide to transfer, you forfeit any right to future payments from the current final salary scheme, but in exchange you get a pot of pension cash – which may well be substantial.
Should I transfer out of my Final Salary Pension scheme?
There are a number of factors to consider when you are deciding on a transfer from a final salary pension scheme. Regardless of how tempting the transfer may look to you, you will be giving up on a guaranteed income for life. In a final salary pension there are no investment risks for you, however upon a transfer, you also would be taking on the investment risk and exposed to market volatility.
There are however a number of benefits in taking the money and transferring. Not everyone’s circumstances are the same and therefore it is critically important to assess individual needs and objectives with the benefits of transferring. Our experts will be able to talk you through all the options open to you with final salary pension transfers and guide you to making the right decision.
The value of pensions and investments can fall as well as rise. You may get back less than you invested.
Transferring out of a Final Salary Scheme is unlikely to be in the best interest of most people.