The demographics of annuities
Perceptions of retirement go from the positive to the depressingly dour. The negative approach seems to have its roots in years gone, when retirement meant you were no longer fit to work and you simply waiting to pass away the remainder of your days, sometimes on a tiny budget.
For many people today, there does seem to be a much brighter outlook: premature retirement; increased survival expectancy; some savings; a pension; more associations to assist pensioners – all make for a much more enjoyable retirement. These positive prospects can grow worse rapidly , however , without good health and fiscal resources. A client’s health is something way beyond the adviser’s control, but making provision for a snug retirement is a crucial element of financial planning.
The government has given the entire issue of allowances a much higher profile during the past decade than at any other time in living memory. Fundamental changes in the way in which post retirement funds can be collected to improve individual choice have given pension a range of new business opitions.
As a consequence, advertising has heightened public awareness. This, coupled with the hoopla surrounding numerous allowance fund scandals, implies that the confidant wants to have a solid knowledge of allowance planning in all of its forms and a capability to apply that data to client situations.
Such is the level of distrust for annuities that folk are looking taking an early pension release to ensure they have their funds under their own control. However, careful planning and detailed advice is a requirement to ensure that this isn’t to the clients detriment.
If you have any questions regarding pensions or financial advice, it is always recommended to seek expert fianancial advice from a financial adviser, who can put you on the right path for your financial future
Pension Age and Early Retirement are key issues looked at by My UK Pension Plan, an online service which connects individuals with Financial Advisers