There is a great deal more to planning for your retirement than deciding what you are going to do with all those extra hours in the day. Once you retire, your sources of income change, and for most, the amount of money you have for the remainder of your life is fixed. This in turn means that unless you want to return to work, you need to make the most of all the streams of income you have access to. This is where your financial advisor Cambridge and beyond comes in.
One of the first things to do when you are planning for your retirement is to review all of your pensions including any pensions you may have had with previous employers. Your financial advisor Cambridge based can review all of your pensions for you. All you need to do is provide the name of your previous employer or the name of the pension scheme. Of course, the more details you can provide your Cambridge financial services advisors with, the quicker they can search, so it is helpful to tell them as much information about your pension plans as possible including the company or provider name, the type of business, and essential details such as your change of address or change of the business address. This is also very useful for Lincolnshire financial advisors. Recent rule changes mean that there are many more options for how you can use your pension pot. The decisions you make can affect how much you have available to spend over the long term, so it is not a decision to take lightly. Among your choices are to take a lump sum, to buy an annuity, or choose an income drawdown scheme.
As well as any work or private pensions you have, you also need to consider your State Pension. Once you reach the right age, you need to claim your pension. You should receive information regarding how to claim from the Pension Service about four months before you reach State Pension age. This gives you time to discuss your options with your financial advisor Peterborough or beyond. Among the decisions you need to make is whether you continue working after claiming your State Pension, or whether you defer claiming your pension until later. Taking this approach means that you have a greater amount of money each week once you do claim. However, your financial advisors in Cambridge or the surrounding areas should note that this may affect other sources of income, such as any benefits that you claim. As you approach retirement, it is not just the money that you have coming in that you need to address. You also need to consider the money that goes out. Taking a good look at your expenditure, over the short and long term, will help you to decide the best course of action to take with your sources of income. For example, if you have payments left on your mortgage, you may be better off in the long term to draw down enough money to pay off the outstanding amount. Your financial advisor will be able to provide information and advice, including how this will affect your tax position.
Planning for your retirement should also include planning for the later stages of life and beyond. If you are yet to write your will, then this is a great time to get financial advice before putting everything in writing. This may include getting inheritance tax support from your financial advisor Cambridge. After all, no one wants to leave their hard-earned estate to the tax man.