How much time do you spend planning for retirement?
The 2015 pension freedoms gave us greater flexibility over our retirement options, but the reforms have also made retirement choices much more complex. This means we need to start thinking about our retirement earlier. However, half (50%) of respondents aged 45–54 to a LV= consumer survey didn’t think about retirement at all last year.
Unfortunately, some individuals do not realise the importance of planning for their retirement. The amount of money saved for retirement will eventually have a profound impact on how we live our lives and our standard of living in our golden years.
Yield on equities and corporate bonds look understandably attractive
People are living longer. Simple demographics mean that supplementary income is no longer a luxury – it’s a necessity. Meanwhile, interest rates are at historic lows – even before you take account of inflation. So, relative to cash, the yield on equities and corporate bonds looks understandably attractive.
Deciding what to do with your pension savings is an important step we will all have to take. Following changes introduced in April 2015, you now have more choice and flexibility than ever before over how and when you can take money from your pension pot. These changes give you freedom over how you can use your pension pot(s) if you’re 55 or over and have a pension based on how much has been paid into your pot (a defined contribution scheme).