Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
2 minute read
We frequently assist clients in this complex area of ‘Pension Freedoms’ legislation. The decision to access pension freedoms has many important factors, and here we cover the top five considerations.
1. Life expectancy
How long has the money got to last, think about your health and lifestyle and consider how long your family members typically survive, then add a safety margin. Is your spouse younger – will you need to leave money for them? Any assumption needs to be robust, because once the fund has gone there are no second chances.
2. Expenditure
How much do you spend? Do you have a modest lifestyle or expensive tastes? How will your expenditure change when you stop working and have more time to yourself? Do you have any burning ambitions on your ‘bucket list’ or one-off events (such as a new car or a family wedding) that will require funding?
3. Stages of retirement
We typically categorise retirement into three broad stages, but of course everyone differs. As a rough guide these are grouped as:
4. Inflation
See more on lifetime cashflow modelling here.
Contact Tim Davison on 01865 292200 or tim.davison@shawgibbs.com