Deb Nolan IFA Leeds / Bradford – Why get independent pension advice

Friday 23 December, 2016

Deb Nolan independent financial adviser and part of the Leeds / Bradford financial planning team reviews the challenges facing 40 and 50 year olds saving for retirement

Planning for your retirement is one of the biggest challenges that you face, and it is now more complicated because of the new pension freedoms that are available.

Many people over 40 approaching retirement are now faced with difficult questions on how to save for their retirement given the increased flexibility but reduced certainty about their retirement income.   This group may have to consider working longer or part-time as increased life expectancy means our retirement income has to last longer.

From the 2015/16 tax year anyone aged over 55 has been able to take their whole private pension known as ‘defined contribution’ or ‘money purchase pensions’ as a lump sum.  They pay no tax on the first 25% and the rest of their pension is taxed like salary at their income tax rate.

Deb Nolan, independent financial adviser in Leeds / Bradford said: 

‘The new pension freedoms make it really important for anyone who is now saving into a pension scheme in their 40’s and 50’s to consider their financial goals in retirement and how they will achieve them.  At Lonsdale Services we recommend you get independent financial advice while you are working so you have time to amend your pension contributions if necessary. Lonsdale Services independent financial advisers can also make recommendations so you don’t run out of income if you take a lump sum when you are 55.  We advise you how to invest your money to generate sufficient income to maintain your lifestyle in retirement based on the risks you are prepared to take with your capital.’

Pension freedom offers more flexibility for anyone retiring but as annuity sales decrease and pension drawdown becomes more popular clients face less certainty in retirement.  Lonsdale Services independent financial advisers can run cash-flow modelling to show you how much income you will need in retirement.  We can consider different health and family scenarios and demonstrate the effects of stock market volatility and inflation on your retirement pot.  Read Daniel Stansall, independent financial adviser Barnet – Managing your income in retirement.  If you have a defined benefit scheme our independent financial advisers are also qualified to consider your financial circumstances to determine your options.  Read Simon Prestcote, independent financial adviser Barnet, North London – Should you cash in your final salary pension scheme?

Tax planning is not regulated by the Financial Conduct Authority.  The value of an investment and the income from it could go down as well as up

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