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Pension Advice: UK Tips And Best Practices

Paying into your pension is easy. It’s withdrawing from it that’s the hard part – especially when the internet is filled with conflicting information and confusing jargon on the best way to do it.

It’s often for this reason that people make mistakes with their savings. Whether that’s putting too little into your pension pot or being overly cautious in the early stages of retirement at the expense of your lifestyle, not knowing all the facts can stop you from enjoying the rewards for your hard work over the years.

Here, our financial advisers set the record straight for anyone in need of pension advice in London – or further afield for that matter!

How much should I have in my pension at 50?

It’s estimated that a single pensioner would need £17,818 a year to live comfortably. This amount requires a pension pot of at least £237,000 at around the age of 55. However, the average UK pension pot stands at £61,897, which according to experts would leave you little to enjoy come retirement age.

If you’re in a relationship, it’s usually much easier to accumulate the necessary wealth to retire comfortably, particularly if you both have multiple legacy pensions that you can combine and put into a single pot. Yet you can improve it in other ways, even later in life.

If you’re concerned that your current pot isn’t enough for the retirement you want, you should consider financial advice. Why? Because it is proven that UK savers who seek the support of financial advisers typically improve their pension wealth by £30,991.

What can I do with my pension at 55?

Although technically you can retire at any time in your career, you will not be able to access your private pension until you reach approximately 55 years of age, as this is the industry standard for pension providers. For people who have prepared for retirement, this age usually marks the start of a gradual transition out of employment.

Depending on the level of your preparation, you may be able to retire at 55 with around £25,000 a year. This would require a pot of approximately £500,000. Of course, this is excluding your state pension.

Your state pension doesn’t necessarily get paid at the same time as your private pension. In fact, as recently as 2018, one in four people aged between 50 and 64 years old didn’t know when they were due to receive their state pension. Once it is paid into your account, you’re able to afford a little more each year. However, it alone isn’t enough to support a comfortable lifestyle.

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FREE no-obligation consultation regarding your pension OR telephone 020 3858 0734 and speak to an independent financial adviser.

Where can I get pension advice?

If you’re in need of pension advice, London is home to a whole host of financial advisers to choose from. These experts will walk you through your finances, personal circumstances and overarching goals. This way, they can determine the best method of drawing out your retirement savings so as to minimise risk and allow you to enjoy your later years.

Specifically, advisers are helpful in the following situations:

Investing pension monies for income

Advising on retirement options

Passing pension death

Benefits to the next generation

If you’re not based in London, pension advice is still commonly found thanks to a wealth of local financial advisers up and down the country, each promising to deliver better returns on your investments. It’s down to you to choose a service that best suits your needs.

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How much does pension advice cost?

UK pension advice is typically charged in one of three ways:

Fixed fee – The adviser will perform a specific service for a pre-agreed set price.

Hourly rate – An hourly rate (£150 per hour on average for pension advice in the UK) is charged for your chosen service, so be sure to ask for an estimate of the time it will take beforehand.

Percentage of assets – The adviser manages your investment portfolio over a period of time and charges a percentage of the portfolio’s total value.

If you were to choose the ‘percentage of assets’ payment option, you can generally expect to pay 1% of the total asset value. Bear in mind, though, that a larger asset doesn’t necessarily mean a higher percentage. In fact, many advisers will charge you more for smaller assets in order to cover their costs.

Do I need a financial adviser for my pension?

By law, you must get regulated pension support if you have a:

Final salary or career average pension (known as a defined benefit pension) worth more than £30,000, and you want to transfer it to a defined contribution pension scheme.

Defined contribution pension worth more than £30,000 with a guarantee about what you will be paid when you retire, and you want to give it up to do something else with your pot.

This is not to say you should only speak to a financial adviser in these situations, merely that you’re legally obligated to. In fact, by working with a financial adviser no matter your circumstances, you’re more likely to increase your savings. Provided they don’t trip you up with hidden fees, their support protects your finances and acts as a foundation for a much more comfortable life.

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Where does Pensionexpert4u fit in?

We know that there’s little else more valuable to you than your lifetime savings. That’s why our team offers free pension advice through our no-obligation consultations. Here, you’re presented with your options as well as given personalised advice depending on your circumstances.

Our advice is conducted face to face, and you’ll speak with an expert at no additional cost to you. This includes no upfront fee – something that’s relatively unheard of when it comes to pension advice in London.

If you would like immediate support with your pension, please don’t hesitate to contact us on 020 7582 3585 or request a callback through our site. Why wait? Find your feet with your finances today.