Personal Pensions

Margaret and lifestyle
Pension Reviews

Many people contact us to request this service as most people have one or two pensions that they took out years ago and then forgot about them. We all feel that if we have a pension—that’s it-we are sorted out. But this is just the start of the story….

Pensions need to be reviewed periodically to consider:

  • Whether a reduction in the pensions held could help to make life simpler. One policy, not many, is easier to understand and we are all subject to information overload these days.
  • You pay the pension company an administration fee for statements, and communication exchange between you and them. See if this can be reduced by having less pension companies to deal with in general.
  • With only one or two pension schemes to consider it will be much easier to look at the performance and value of these and see if they will give you what you need in retirement.
Pension Forecast

Many of us, either taking out a pension for the first time or having held one or two pensions for a while, will think that that is it. I have a pension, I am sorted. But this is just the start…………….

Pensions, as with all investments can increase and decrease in value and it is important that they are reviewed to ensure that what you thought you might get, in retirement, is actually the reality.

Many of our clients are surprised when we tell them that their pensions will not provide them with the income they need in retirement, even though they have been paying regular contributions for years.

  • Click here to read Brians story - Brian meets his Adviser

    At Brighter Financial Services Ltd our position is clear and simple—we want to help you make the most of your money, by guiding you in the development of a financial plan. If products are discussed as part of that plan, we will explain them to you in a language that you understand so that you can make informed choices about how you invest your hard- earned money.

    We help all sorts of people, those with investments and pensions and those without, as-well as those just looking for a bit of advice.

    Meet Brian. Brian has a bit of money in the bank and plans to pay off his mortgage before retirement. But his house has not increased in value as he expected and having just enrolled in the Company pension scheme he is now thinking that he would like to get all his affairs in order.

    Brian decides to look into pensions and gathers up some information

    “There is so much choice-Where do I start? Let’s look at a simple personal pension” Brian thought.

    “A personal pension portfolio gives you the opportunity to exercise choice on the journey to your retirement destination. You'll need to decide how much you can feasibly afford to contribute, and how much risk you're prepared to take...(“Eh? What risks?” thought Brian. “I don’t want to take any risks. What does this mean?”)

    Still reading…….“you may also want to think about what circumstances may change your attitude to risk and what other types of risks may affect your retirement provision. It is always best to seek financial advice on such matters.......” (“Oh here we go” snorted Brian “it’s just a means of them making money.”)

    He slams the brochure down on the table “this is far too difficult” he thought. “Anyway I am now in the Company scheme. That’ll do.”

    Brian has his mind changed—a little……..

    Later, Brian asks his deputy if he has a pension. “Yes” said Rich—“had one since I was 18 years old”.

    “Well you don’t need that now then do you Rich, as there’s a company scheme in place!” scoffed Brian

    Rich was quick to respond “I do. My Mum had to go on working a long time past when she wanted to finish as she couldn’t afford to stop, even though she was in the Company pension scheme. She had severe arthritis and was in pain all the time” he said sadly

    “Best to understand what both a personal pension and a company scheme have to offer, I suppose, to make sure you have enough to stop work if you really have to.”

    Brian goes away thinking. Eventually he decides to take some financial advice to see what is best for him.

    Brian meets with a financial adviser

    The adviser meets with Brian and advises “As you have a company scheme starting up, I will look into the details of this before advising you further on a personal pension. I want to give you the confidence that you have the right plans in place so that you have the chance of retiring or taking your pension, when you wish.”

    The adviser clearly and simply explains attitude to risk to Brian and looks at his current financial position. He takes his time understanding Brian’s needs and considers his circumstances in the round.

    “Well I really didn’t think I needed an adviser before, but I am pleased I met with this one. It has straightened a few things out for me and I am now much clearer.”

    “Yes, really nothing to be worried about at all” he said, sighing with relief.

Our financial planning team can use forecasting modelling tools to look at your pensions and savings (including the state pension) to determine whether you will have enough income in retirement. The report produced will form part of our advice at a pension review or as part of our servicing package for existing clients.

Pension forecasting is vital to ensure that:

  • You do not have a cash shortfall in retirement
  • You can work towards receiving the income you need in retirement
  • You are supported during the years of saving into your pension and investments with financial evidence that enables you to effectively plan for the future.
Pension Draw-down

What we will discuss with you if you are choosing a draw-down pension:

We will ensure that we have developed a financial plan with you so that we understand the risks you are willing to take with your investment and that you have clear objectives for needing your pension as a draw-down arrangement.

In particular we will cover the following:

  • Your specific circumstances and the need for a drawdown pension arrangement as a result of those circumstances
  • Risks associated with this product in terms of maintenance of high income drawdown strategy, tax implications, erosion of remaining funds and annuity rates now and in the future.
Make your pension part of your everyday accounting

Most days we think about how much we have coming in and how much we have going out. The amount we pay into our pension should form part of this thought process and getting to understand the value of our pensions is a big part of living life well today. Speak to our advisers, who will help you, without obligation, to understand how your pension fits into your life, both now and into retirement. Alternatively, If you want to check us out first see our Terms of Business. This clearly explains how we will work with you if you choose us to provide you with support on your pensions and savings.

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