- How we work
- Financial Planning
- Wealth Management
Stopping work can be quite a worrying time and changing your mindset from saving to spending is not an easy thing to do!
It is easy to underestimate your life expectancy – but the life expectancy for a 65 year old in good health is approaching 90 and 1 in 4 65 year olds will live to at least their mid 90’s. This means that the money you saved up over your working life of 40 years might have to last around 30 years.
We all have allowances – personal allowance, ISA allowance, capital gains tax allowance, savings allowance; Structuring your savings and pensions to maximise these can make a big difference to your after tax income and make it last longer.
Whereas before the target was often on accumulating assets and obtaining the best growth rate you could, now the focus might be more on a sustainable level of income, so as to achieve your target income without overly eroding your money.
You might also have a list of holidays and projects that you’ve always wanted to do, but have put off. Putting in place a proper financial plan can help these become a reality.
Your thoughts may also turn to how you want your money to eventually pass to your beneficiaries – there are also options available to you to limit the amount of inheritance tax your estate might pay and therefore ensure that more of your hard-earned funds are passed to your beneficiaries.
Legislation regularly changes, and regular reviews should always be conducted - even if you made arrangements only 2 or 3 years ago, it may be that these are no longer suitable, and no longer achieve the desired effect. A good example of this is the change in pension legislation in 2015, and now pension funds can be left more tax efficiently to others than previously permitted.