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Financing Retirement

When it comes to financing retirement there
is no one right answer. Every individual
has their own needs and expectations, their own levels of income and
expenditure. Add in the many pathways
which are open to those who choose to save for later life and it is hardly
surprising that best practice is to look at each case on an individual basis.



However, if there is no one right way,
there are certain indications which may give cause for concern. One of these
was highlighted recently by the Association of British Insurers (ABI). Their
analysis of monies being withdrawn from pension pots following last year’s
pension freedoms reform has revealed that there is a small minority of
individuals who may be putting their financial security in retirement at risk.



Whilst 43% of pension withdrawals were for
1% or less of the overall pot, 4% of withdrawals resulted in the pension pot
being reduced by 10% or more with some individuals withdrawing the entire sum
available. Whilst the ABI acknowledges that some of these higher withdrawal
levels may be by individuals who have multiple pension savings, they are
concerned that some individuals may be withdrawing too much cash at one time,
thereby jeopardising their financial security in years to come.



If you’re looking for advice on pensions,
or if your situation has changed and you may therefore need to review your
existing investment portfolio, contact Beckworth by using one of the links on
our website.