Pensions
We arrange:
Stakeholder Pension
For those who want to keep their annual charges below 1.5% and are prepared to accept the limited choices of funds that are usually offered
Personal Pension
For those who want a wide range of funds from the provider and externally, and want the choice of different charging structures. We can go to the insurance company providers or the fund supermarkets
Self Invested Personal Pension
For those who have a need for investing into commercial property for their business or other more complex financial dealing which require flexible, and where the charges with be in line with the service needed.
Pension Review
Is for those who have worked in a number of companies and have a number of pensions that they have not reviewed and may not know how to review. We look at the individual pensions and review their charges from a recent Plan Statement using a research tool. We then compare the charges and the fund choice of each provider. You provide your ‘attitude to risk’ from which we build an ‘asset allocation’. We then compare the charges and the fund choice to provide you with a recommendation as to whether to amalgamate some or all of your pensions with a chosen provider, or whether to leave them separate.
How much to save into a Pension
No one can give you an exact figure, and this should not be considered as advice. We can make some very rough calculations based on the fact that a lump sum at age 65 will buy an income for life (an annuity) of about 6% so that would suggest that for every £170,000 of pension fund at retirement a married man is likely to receive about £10,000 income in retirement, where that income would not increase (much less if it is going to increase). So, assuming price inflation currently 2.5%, charges 2.5% and investment growth at 7%, a prudent person might assume that their pension needs to be funded for every £10,000 of income wanted in retirement should be:
Starting age 25
£230 per month |
Starting age 35
£350 per month |
Starting age 45
£600 per month net of tax |
So why are we suggesting these rough figures:
- It pays to start as early as possible
- It pays to ignore those who deride pensions – they have their reasons, but this won’t help you have a comfortable retirement
- It pays to get good financial advice
- It pays to review your pension contributions annually – after all you review your salary annually.
- You may be able to see what your employer and your contributions are, and see if there is a shortfall
- The average life expectance for men is now 84 and for women is now 86, so you are likely to be retired for a very long time.
Would you like a benchmark?: A person on a final salary scheme with a large company would receive two thirds of their final salary, if they worked at the company forty years, or a proportion thereof, based on years of service. So, after forty years, a person earning £30,000p.a.would receive a pension of £20,000p.a. index linked, (or a spouse’s pension of 50%).
