Want to stretch your savings?
With retirement on the horizon, you can start thinking about taking up that hobby that fell by the wayside or spending more time with the people you care about.
Before you start dusting off your old guitar, you need to think about how you’re going to afford to retire comfortably. It’s never too late to get better prepared, even if you haven’t been thinking about your retirement until now.
Below we’ve put together an example based on our customers to show you how we can help people keep living the life they want to lead, whatever their circumstances.
Meet John – Mechanic, age 66.
John hasn’t always been on top of his savings – he’s a ‘go with the flow’ sort of guy, more interested in picking up his guitar than paying into his pension. He started work at 16 as a mechanic in the local garage and has worked for a lot of different employers since, even going self-employed for a time. This meant pensions have been hard to commit to, and tricky to keep track of.
While saving for retirement was never top of his agenda, John has 2 pensions from different employers that he’s put money into over the years. So, he has savings – they just need a bit of a tidy up to make things easier to manage.
He also owns a small property that he rents out, giving his income a little extra boost.
His wife Linda started work at an early age too, and when she retired in her early 60s, John felt it was time to take things a bit easier too – after all, Linda usually knows best.
While the rental property would pay them enough to cover the basics if he retired, it’s always good to have a bit of extra money with which to enjoy life. So how could he make his money work harder?
One of his pensions was with us and he saw that we offered financial advice. After speaking with one of our advisers, he realised he had a lot more choice than he thought.
They recommended that he put his pensions into something called income drawdown – or a flexible income – which would leave his pension invested but would let him take money out whenever he wanted to. He was reminded that its value will depend on the amount of withdrawals, the performance of the investments and the impact of charges – plus, future income is not guaranteed so it may not last a lifetime.
Our advisers were able to answer every question he had about income drawdown, and he felt comfortable moving his money into one place, knowing the benefits he’d get from it.
Now, John and Linda can dip into their pension pot whenever they need the extra cash – and treat the grandkids once in a while too.
John feels more in control of his pension money, and he and Linda can relax – more than usual – knowing they’re on top of their money as they enter the next chapter of their lives together. They regularly review their retirement fund to check it’s all ticking along nicely – after all, it needs to last a lifetime – and ensure the choices they’ve made are still right for them, safe in the knowledge we’re here to help them if they need it.