The stock market has certainly taken us for a stomach-churning
ride recently. But these things happen and hopefully the worst
is now over. However, the long downturn has left some problems
in its wake for many people with pension schemes.
If you are planning to retire in the next few years or so, this
could be a good time to review where you are now, work out where
you want to be and take steps to get there.
You could sell the family silver. A pension plan doesn’t have to
be a Pension Plan. Anything of value that you have earmarked for
your retirement could count towards your pension planning,
whether it’s an investment bond, a savings fund, PEPs, ISAs, a
classic car a couple of Rembrandts, a legacy, even a chunk or
all of the family home.
In an ideal world, many people would aim for a pension income of
about two thirds of their final salary. In practice, the pension
you need will depend on the standard of living you want when you
retire. So it would be wise to work out how much income you’re
going to need to provide that standard of living.
Will Life Be Cheaper?
Will the mortgage be paid off by then?
Will the kids have left university?
Will they have left home? (We hope so)
Will their weddings be behind you?
Will you have moved to a smaller home that’s cheaper to run?
Will you have stopped paying into various savings and life
insurance schemes?
All these things can reduce your cost of living. On the other
hand going around the world will put them back up!
Get a UK State Pension Forecast
You can get a State Pension forecast telling you in today's
money the State Pension you have already earned in the UK and
what you can expect to have earned by State Pension age. It will
also include details of your additional State Pension if you
have one.
You can download the State Pension forecast application form
from The Pension Service website, or call the Retirement Pension
Forecasting Team on 0845 3000168 and they will fill in the form
with you over the phone. Lines are open from 9am to 5pm and
calls are charged at local rates.
You can also write to them at Retirement Pension Forecasting
Team, Room TB001, Tyneview Park, Whitley Road, Newcastle upon
Tyne, NE98 1BA and ask for a forecast application and a return
envelope to be sent to you.
You now know roughly what you can expect from your pensions and
you have worked out what your cost of living might be when you
retire. The question is: will you have enough money or are you
heading for a shortfall?
If you are heading for a pension “gap”, it needn’t be too late
to make up the difference; provided you act promptly. Even if
you are on track, you might consider doing a bit more so that
you can enjoy an even better retirement.
If you’re lucky enough to be in a company scheme or if you’re
employed in France you’ll receive a pension scheme at retirement
based on your length of service and salary level. However you’re
unlikely to retire on two thirds of your final salary unless you
are one of the very few who has been employed by the same
company and in the same pension scheme for forty years or more.
I Can Help
I have a variety of schemes both “offshore” and in France, to
help you “top-up” your existing arrangements. Or if you are a
wandering Brit, you could utilise an International Pension Plan.
Once you've sorted out your pension arrangements, don't forget
about them. Check with your scheme provider on a regular basis
to make sure everything is working for you, as it should. If you
become better off, you may want to pay in more to build up your
pension or get another policy. Check with your pension provider
to see what charges are involved. You should contact a financial
adviser. Us
How Can I Track an Old Pension?
If you think you may have an old private pension, but you are
not sure of the details, I can usually help by tracing it for
you.
