As I’m sure you’re aware, pensions are a minefield, especially after the new flexibility rules were implemented in April 2015. Since then, a lot has changed in financial services, and people are still trying to keep up with what happened in April 2015.
‘Baby Boomers’ are coming to the retirement phase of their lives, whereas ‘Generation X’ and the Millennials are starting to think, and plan towards their retirement.
We all want our retirement to be as comfortable as possible, and to be enjoyable – one way of doing this is to plan, and to review. Receiving regulated advice, by a suitably qualified independent financial adviser is imperative.
It may be a little late for the baby boomers to review their current retirement provision, however understanding their options is essential. Six million people in the UK have seen a huge upsurge in the value of their pensions, especially regarding defined benefit (final salary) pensions – one of the reasons for this is low interest rates.
Generation X could be the last generation in recent times to earn more than their preceding generation. Although most defined benefit schemes are now closing and we’re moving towards large scale money purchase schemes, it is imperative that these pensions are reviewed regularly. Transferring pensions between providers could lead to increases in growth, and more suitability to the clients varying stages of life.
Millennials aren’t in a similar situation to Generation X. It has been widely reported in the media that Millennials are to be the first generation to earn less than their preceding generation. A report by the Resolution Foundation, highlights this fact.
It’s expected that because of this, and the new workplace pension rulings, that reviewing their pension provision, to make sure its performance is maximised, along with other considerations which a financial adviser can discuss with you, can be vital to future retirement provision – it is never too early to review.
Whether you are transferring your main pension, or reviewing your current pension provision with a view of planning for retirement, pension transfer is complex, and is personal to each client.
It is important that every client thinking of transferring receives regulated independent financial advice from a qualified financial adviser.
Please contact us today if you think it’s time for to review your pension arrangements