Will the pension reforms have an effect on retirement planning?

Just under a third (30%) of people believe the recent pension reforms will affect their plans for retirement income. Responding to a Schroders survey, of the people who said pension reforms will affect retirement, a significant proportion (45%) said they are likely to consider taking some money as cash and putting the balance in an investment fund. This is why if you are concerned if the new pensions reforms will affect your plans for retirement income then you should seek independent financial advice, this way you will be given advice and guidance that will suit your individual circumstances and there for ensuring you have a secure income when you come to retire.

Cash is king
Another plan is to invest in an income fund, and 23% said they are looking to keep the money in cash. 29% are planning to put the money towards a luxury purchase, such as a dream holiday, and 28% said they would use the money to pay off their or their family’s debts[1].

Understanding the changes
The remaining 70% who did not think the reforms will affect their retirement income planning gave varied reasons for this. 20% said this was due to worrying about taxation issues, and 31% said it was down to not knowing what decisions to make and not fully understanding the changes. 11% admitted they didn’t have a pension, again this is why its important if you have any concerns or questions to seek independent financial advice as you will be able to gain a better understanding of the changes and how they could possible effect you.

We at Hutt Professional have independent financial advisers who would be more than happy to offer you the independent financial advice you need on your pension or pensions you have. If you are located in Leamington Spa or surrounding areas please do not hesitate to contact us.

 

Source: http://www.goldminemedia.co.uk/   08/07/2015