Retirement.

Are you close to retirement?

YES

As you look towards retirement, you spend a lot of time thinking about what you can do with your days. This is the time when you finally get to please yourself - work part time, take on a personal project, tour the world or, without any guilt, simply do absolutely nothing. It's taken you a lifetime to get here so a bit of planning is a very good thing.

Part of these thoughts will involve your finances, particularly any pension you have built up. It has no doubt involved sacrifices to maximise its value and the decisions you make now you will live with, literally, for the rest of your life. It therefore deserves some serious thought.

Divest, defer, divide or drawdown?
You may not realise but there are now many options which the right plan at retirement can offer. Of course you can take your income now - and a search though the annuity providers for the best rate and terms will maximise your return - but it is not the only option. If you are continuing to work, want to reduce your hours over time, or simply have enough money to see you through a couple of years, then phased retirement, drawdown (an unsecured pension) or short term deferral may be more appropriate.

The best option for you
Our retirement review service can help you to make the right choice - and maximise the income available, whichever option you choose. We take a detailed look at what you have, what your plans are and what can be done - and then seek out the best solutions for you.

Please contact us to discuss further. It will take only a few minutes - but could end up saving you thousands of pounds.

How much can you expect to retire on?
We all look forward to enjoying the spoils of a comfortable retirement after years of working. However, whether you end up living in the lap of luxury, or having to count the pennies, is determined by the decisions you make for your savings. Before you start dreaming of your long and happy retirement, take some time to consider how you are going to pay for it.

The Government is making changes
In April 2006, 'A' Day introduced more flexibility to the pension's rules, giving you more control over what is invested and when, and how the benefits can eventually be withdrawn. In 2007, the Pensions Bill then looked at State Benefits and funding options which might help encourage more people to start making a contribution. As a result, a new, low-cost pension scheme - personal accounts - is being introduced from 2012.

Get yourself on track
But you don't have to wait for the Government before you act. In fact, the earlier you start, the more choices you have. But first you need to understand where you are and what you already have. How many companies have you worked for and left partly funded pension plans with? How many plans have you taken out yourself? What other provision do you have - eg: savings accounts, investment plans, perhaps a second house or even your own business.

Then you need to take charge. Your pension fund may be one of the largest assets you have, but how much is it actually going to pay you? £10,000 might buy you a luxury trip round the world, but it is not so impressive a figure if you need to plan many years of holidays.

Can you afford your retirement?
As healthcare and living standards improve, so does our longevity. A male aged 65 is now expected to live to almost 83† and a female even longer. This, along with the attraction of early retirement, means some of us could be looking forward to a happy retirement lasting perhaps more than 30 years.

At the same time, however, birth rates have been falling. Fewer couples are having children - and those who do are having fewer and leaving it later†. As a result, a thriving workforce that was once more than able to support our elder population is becoming far less able to do so.

So, whilst we may be looking forward to long and carefree days, finally free of the rat race, the question needs to be asked - is our pension provision good enough to pay for it?

Take charge
Our pension review service is designed specifically to help you take charge of your own retirement plans. We take a comprehensive look at what provision you have, where that provision is going to place you, consider how this fits with where you want to be and then, if appropriate, suggest the best options to make up any shortfall.

For more information, please give us a call and we can outline the possibilities for you, without obligation.

† Source: National Statistics Office and Government Actuaries Department, Life tables published in 2006, based on 2007 estimated figures for life expectancy. www.statistics.gov.uk and www.gad.gov.uk

Self Invested Personal Pensions (SIPP's)

The pension planner's new flexible friend
There has been a lot of fuss in the papers over the past few months about Self Invested Personal Pensions (SIPPs) and the flexibility that they may or may not be able to offer for your pension planning. Following changes to pension rules last year, the flexibility offered by SIPPs means they have become one of the most popular pension products in retirement planning.

How are SIPPs different?
The basic benefit of a SIPP is the wide range of investments it provides access to - including funds, shares, gilts, Exchange Traded Funds and investment trusts. Some can even allow access to more esoteric investments like commercial and foreign property.

This range of options makes it much easier for the retirement investor to manage their portfolio - setting up and monitoring their investments specifically in line with their own needs and then switching between investments and asset classes easily as their situation changes.

Want to find out more?
Despite this flexibility, SIPPs are not necessarily right for everyone. Flexibility is a major consideration but one which needs to be weighed against existing investment products, charges, time to retirement and your attitude to risk. However, in the right circumstances, they can open up a whole world of investment opportunities, which could seriously enhance some investors' potential for a comfortable retirement.

At Castle Associates, we have access to the entire market of pension products and options to help you look for the best solution for your needs. If you would like a comprehensive introduction to the types of planning available, call us for more information.