Do you need a helping hand to navigate pension freedoms?

The pension freedoms introduced in April 2015 saw a dramatic change in how we save for and fund our retirement. The key change was around unrestricted access to pension funds, handing individuals the opportunity to put themselves in the pensions driving seat. But navigating these new opportunities is easier said than done: below are two examples that spring to mind.

Make the most of pension tax relief before it is too late

Anyone over 40 is now entitled to a free NHS mind and body health check every five years, at which they might expect to receive the cheerful advice – “use it or lose it”. A wealth adviser or manager looking to keep your finances in top condition might declare the same of your pension.

How to minimise tax at retirement

People could end up paying 200 times more tax, depending on how they decide to access their retirement income, according to research by the Pension Policy Institute (PPI).

The findings were based on the tax that someone would pay if they fully withdrew their defined contrition (DC) pension, compared with annuity purchase.

Retirees could outlive their pension pots, PPI warns

More than one in four retirees could outlive their pension pot, worrying new research from the Pension Policy Institute reveals.

The independent research organisation says those approaching retirement with high levels of defined contribution (investment-based) savings but little or no defined benefit (salary-based) pension will face tough choices.

Savers underestimate the cost of a comfortable retirement

Research by investment giant Schroders reveals UK retirees are having to invest more than expected to generate a decent income, while the cost of living in retirement is also higher than they had anticipated.

Schroders surveyed 22,000 people across the globe, including 1,000 in the UK, to understand how well they are preparing for retirement.