The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.




Retirement Planning



Preparing for retirement? One of the biggest goals in life is a happy, comfortable retirement. At whatever age you plan to stop working, you will want to ensure you have enough money to go with your new-found freedom. Perhaps your aim is to have paid off your mortgage, go travelling, or buy a cottage by the sea, but it's worth knowing that even the small financial decisions you make between now and then could affect your ability to retire when and how you want.


A regularly-reviewed financial plan, starting now, will keep you on track to achieve whatever aims you set yourself. Your future starts now. With all the publicity in recent years, it's easy to think that finding enough to live on when you retire will be a struggle. While it's true that a badly-planned retirement can lead to difficulties, the quality of your future life can be greatly improved by your actions now, and you can take complete control of the outcome.


A properly structured financial plan, with the right pension or investment in place, can set you on the road to a fruitful and happy retirement. What's fuelling the renewed interest in pensions?


Alternatives to low annuity rates.
Buy-to-Let bubble has burst?
Now possible to leave your pension to your children.
Now possible to have an income that can be stopped or started,
increased or reduced.
Interest in Self-Invested Pensions (SIPPs)
Possible to take tax free cash without having to start retirement income.
More pressure to find ways of reducing income tax.


Income Drawdown


Income Drawdown has become an increasingly popular alternative to annuities. It provide greater flexibility and additional benefits. However it also provides less security and additional disadvantages. It is certainly an alternative to be considered, but it is equally not suitable for everyone. If withdrawals are too high or your investments underperform, you could run out of money.


Your pension fund remains invested with the potential for further growth.
You can change the level of income taken at any time, enabling you to
reduce your income in years where you have other income, and increase
it when you do not.
You can take some or all of your tax free cash without having to start
drawing income.
In the event of death, there is still a fund which can be left to your heirs.
You still have the option to use your fund at any time to buy an annuity.


Despite these advantages, Income Drawdown is not suitable for everyone. It does involve a greater degree of risk. If the level of income drawn from a pension is higher than the growth of that pension, your future income could be reduced. If you are at all uncertain about the suitability of income drawdown we strongly recommend that you seek specialist advice.


CG Financial will be happy to help provide further information.


Self Invested
Personal Pensions


A SIPP (Self Invested Personal Pension) gives you more choice and control over where you can invest your money. While most traditional pensions limit investment choice to a short list of funds, normally run by the pension company's own fund managers, a SIPP provides a much wider choice. For investors with the time and expertise, most mainstream investments are available. SIPPs are quite commonly used by businesses wishing to use their pension scheme to invest in their business premises.


In addition, it is possible to choose from most of the funds run by top managers, as well as picking individual shares, bonds, gilts, investment trusts, exchange traded funds and cash.


In the past, SIPPs have had higher levels of charges than Personal Pensions and Stakeholder Pension. Now however, if you are looking for a low-cost pension offering a much wider investment choice, a number of major Pension Providers offer suitable schemes.

Please contact us for further information.


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