After working for 40 plus years, you’ll no doubt want to use your retirement days as best as possible. A big factor of this is your pension, funding your later years to be lived out peacefully and comfortably. Consequently, it’s incredibly important that your finances are well looked after when you reach this period of your life.
After all the toil, many might not think to use a pension advice expert, assuming their money is all lined up waiting for them safely. However, whether it’s taking the pension or losing it to fraudsters, a pension advice expert is always on-hand to offer some useful advice. Here are three reasons why you should consider speaking to a pension advice expert.
Taxation
It is naïve to assume that all the money in your pension pot is yours to spend freely once you’re retired. Dreams of holidays and new furniture can explore the rational side of the process, and you can end up losing more than you ever thought you would as soon as you ‘take your pension’.
You can take your whole pension out as a lump sum, but it’s taxed past 25%. Consequently, the naïve or vulnerable may assume they’re about to become rich, when the tax will have a fair impact on the amount they actually get. Consequently, a pension advice expert can help you at least prepare for these pitfalls so they’re not quite as bitter or crippling.
Using the Pension
Many may think of their retirement as their chance to roam free and splash out. It’s not worlds away from the truth, but as with regular working life, saving and spending wisely is key to having a sustainable income. The pension does not exist to be wasted or spent on a luxury lifestyle alone.
A pension advice expert can help you acquire the best returns from your money; e.g. insurance plans and other spending habits and needs. They can safeguard your funds to an extent, and ensure it’s not being lost to fraud or overpriced services. For example, companies such as Hymans Robertson can help you discover the best investment plans, and thus provide the best value for your pension money.
Stopping a Pension
A loss can sometimes be even harder when there’s no money lying around either. You might assume your pension schemes will fix themselves after you, or a loved one, are gone. However, this is not entirely true, so it’s important you seek out a pension advice expert to iron out the details.
The experts can help you ensure any pension payments stop coming through when appropriate. It’s a lot of going through paperwork, but an expert will streamline your circumstances into a step-by-step guide to resolve the matters quickly. There may also be the matter of dependence costs, whereby money from the pension is attributed to loved ones of the deceased. In the end, a pension advice expert will help you make sense of the overwhelming task at hand.
Taking a mortgage out on your home can give you extra money when you retire. However, you will have to constantly pay portions of that money back. A special form of home loan called a reverse mortgage is also available to you if you are retirement age. Unlike a standard loan, it can be used to borrow money for an indefinite time period. The amount of money that can be borrowed can be estimated using a reverse mortgage calculator tool. Only when you pass away or move away will the loan be called in by the reverse mortgage lender. In the meantime you can securely live in your home without fear of defaulting on your mortgage. You can also enjoy spending the money you receive in a variety of ways. Additionally, your heirs can choose to pay the loan balance and keep the home if you pass away.
