Get an essential guide on retirement options.

1. FINANCE
Who can we rely on
close to retirement?
THERE IS no simple answer to eye watering; in 1984 there were who are close to retirement,
this question unless you have around 660,000 people in the UK there have been requirements
already made up your mind aged 85 and over; by 2009 these on the adviser to maintain their
that the answer is yourself. numbers had more than doubled knowledge levels, by taking
The retirement and long-term to 1.4 million. specialist exams, designed to
financial planning arena is This increase in our life provide the knowledge and
one that we all must take very expectancy has placed pressure ability to handle the significant
seriously, not only because on our pension provision which number of variables that exist in
options is to provide them with
we may live to a ripe old age, is difficult to quantify. What we the planning close to retirement.
our guide, ‘Your Retirement
but also we may find that our do know is that as certain as we This is not a conclusive list Options Explained’. Having read
need to look after other family are that people are living longer but these are the main product this they are able to appreciate
members poses a financial crisis we are equally certain that there choices when you are close to some of the most important
that we and they were not quite is less money being pumped into retirement:- aspects that affect their personal
expecting. the state system to deal with the  Lifetime Annuity – (Including circumstances and appreciate
Our essential guide to your increase in outflow. Enhanced and Impaired life) some of the differences that exist
retirement options will give a Today, as people approach  With Profits Annuity between the product choice,
better understanding of the retirement, they are finding they  Unit Linked Annuity making further discussions on
best options for your personal may have a number of different  Variable Annuity their best choice much more
circumstances. If you are close arrangements, making the task of  Scheme Pension meaningful.
to, or simply looking at the best planning their income requirement  Phased Retirement If you are close to retirement
way to plan towards, retirement, even more complex.  Capped Drawdown or know someone who is, our
having a good understanding of Typically, someone would have  Flexible Drawdown 28-page guide could be the best
your options for generating the their basic state pension to look  Short Term Annuities Christmas present for you or
capital and income that you need forward to, possibly some State We have found that one of them. Contact Phil Cross if you
could prove invaluable. Earnings Related Pension (SERPS) the best ways to help our clients would like to receive a copy.
The focus on pensions and to top up their state pension and, understand their retirement Philip Cros
their ability to cater for us in on top of this, they may have
retirement has been placed had either a personal pension The value of pensions and investments can fall as well as rise. You may not get back the
original amount invested. The views and opinions in this article are simply those of the
fairly and squarely under the or employer pension scheme author. This article does not constitute personalised advice and therefore should not
microscope due to a number of which could have been a money be relied upon in making investment decisions. Should you wish to discuss the concept
factors, not least market volatility, purchase arrangement or if really further, or receive personalised financial advice, please contact Philip Cross on 01634
730800 or phil@directfp.co.uk
which clearly is of great concern, fortunate a defined benefits
Philip Cross is an Independent Financial Adviser working for Direct Financial Planning (UK)
especially if you are close to scheme.
Limited. Direct Financial Planning (UK) Limited is an appointed representative of TenetConnect
retirement. Not so many years ago, if Services Ltd who are authorised and regulated by the Financial Services Authority
Sudden movements in the you had a personal pension,
value of your retirement fund your choice would have been
will impact on access to capital to buy an annuity which, in its
and future income levels; the simplest form, is an income for
rapid developments in retirement life in exchange for a lump sum
products driven by changes in payment from your pension
legislation, resulting in there plan. There was a limited range
being more choice than ever of variations available on this
when you are close to retirement. general product at the time, but
So with greater volatility in now the choice in retirement
the markets, greater choice in products and vehicles is truly
retirement products and the mind-boggling. Transforming your Business
expectation that we are likely to
live longer in retirement than we
This has been driven over
the years by the need to make
financial future Planning
did working, makes the choice retirement options more flexible Tax Planning
of the right product even more to cater for people with larger Independent
important. pension funds, to provide spouses’ Financial Advisers Investment
The longevity issue benefits in different forms, to take
Planning
The Department for Work and into consideration people’s health Borrowings
Pensions (DWP) has estimated and lifestyle, combat the long-
that almost a fifth of Britons will term effect of inflation and the
live to be 100 – at least 10 million continued reduction in annuity
people alive today will make their rates and, ultimately, make Protection
Planning
century. pension planning something that Retirement
The DWP estimate around three people wanted to do rather that Planning
million currently under the age simply avoid until it was too late.
of 16, 5.5 million currently aged This rapid change in the
between 16 and 50 and 1.3 million retirement landscape has placed
Tel: (01634) 73 08 00
51 to 65-year- olds, along with Independent Financial Advisers E-mail: info@directfp.co.uk
www.directfp.co.uk
857,000 who are already retired, (IFA’s) in a very challenging role. 2a Galleon Way, Lower Upnor,
will live to 100. For those who have decided to Rochester, Kent ME2 4GX
The scale of this increase is continue working with people
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