Planning your pension in advance?

There are currently 1.38 million people aged over 85, a figure forecast to double in the next 20 years. Dementia also affects one in six people over 80 and one in three over 95, and is a growing priority for the NHS. Even before the promised overhaul of the rules surrounding pensions next April, many people are failing to get the best deals. Earlier this year, the Financial Conduct Authority (FCA) concluded that 80pc of savers who buy their annuity from their existing provider could get a better deal on the open market.

Nest said failings in the annuity market show that even if people feel confident, they are still capable of making mistakes, or “suboptimal” decisions. As experience financial planners at Enable in Bishop’s Stortford we know people tend to lose confidence with money as they get older.  Mark Fawcett, chief investment officer at Nest, has suggested people should maybe aim to plan how they will finance their retirement in their 50s, while their mental capacity to manage money is likely to be in a “sweet spot”.

Drawing upon Pensions Institute research the best time to buy an annuity is when people are in their 70s and 80s. Mr Fawcett also said there should be more financial products that allow people to select options in their 50s and 60s. These would be chosen in advance, ready for when people reach the point at which it makes most economic sense to tie their money up in an annuity, which could be at least a decade later. Such products are not yet available, but there are a number of things people in their 50s can do now to plan for their retirement and Enables’ IFA’s in Bishop’s Stortford can help you lay the foundations of your retirement plan whatever your age.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE