Indeed, any investment returns generated within your fund are typically free from Income Tax and Capital Gains Tax.

Better yet, you can also receive tax relief on your contributions, significantly bolstering the value of your pot over time.

Despite these advantages, many people overlook one of the most valuable benefits pensions offer.

Research from PensionsAge (8 December 2025) found that 44% of UK adults don’t know what pension tax relief is, while just 31% could identify its purpose.

Over time, missing out on pension tax relief could be costly. So, continue reading to find out how pension tax relief works and how it could significantly improve your retirement income.

Pension tax relief is when the government tops up your contributions

When you pay into a pension, the government essentially “tops up” these contributions based on your marginal rate of Income Tax. Looking at it another way, tax relief acts as a “refund” of the Income Tax you have already paid on the money you put in your pot.

As a result, in England, Wales, and Northern Ireland, a £100 payment into your pension would typically cost:

• £80 if you pay basic-rate Income Tax
• £60 if you pay higher-rate Income Tax
• £55 if you pay additional-rate Income Tax.

Please note, Income Tax bands and rates are different in Scotland, which affects pension tax relief.

For most personal pensions, basic-rate tax relief is applied automatically using a system known as “relief at source”. Some schemes use net pay arrangements, where tax relief is applied differently (this article talks about relief at source only).

If you pay higher- or additional-rate tax, you’re usually entitled to relief at your marginal rate. However, this portion isn’t added automatically. Instead, you usually need to claim it through your self-assessment tax return or by directly contacting HMRC.

Many people forget to do this. Standard Life (24 February 2025) estimates that up to £1.3 billion of extra relief went unclaimed between the 2016/17 and 2020/21 tax years.

This can make a considerable difference:

• A £1,250 total pension contribution would cost a basic-rate taxpayer £1,000, as £250 is added by HMRC.
• For a higher-rate taxpayer, the same total contribution would only cost £750 once the extra relief is claimed.

As such, ensuring you claim everything you are entitled to could substantially increase the amount of money you can put towards retirement.

If you believe you have missed out in the past, it’s worth noting that it is possible to backdate your tax relief claims for up to four tax years.

There are limits to the amount you can tax-efficiently contribute to your pension

While the incentives of tax relief are generous, there are limits on how much you can pay into your pension each year tax-efficiently.

You can receive tax relief on any pension contributions worth up to 100% of your earnings for that tax year. But if you surpass the Annual Allowance, your contributions could face a tax charge.

The Annual Allowance sets the maximum amount that can be contributed across all your pensions in a single tax year without incurring a tax charge.

As of 2025/26, this is £60,000. While the Annual Allowance does reset each year, you may be able to carry forward unused allowances from the previous three tax years, provided you were still a member of a pension at the time. You also need to use all of the current year’s allowance before you can carry forward.

It’s vital to note that if you have a high income, you may face the Tapered Annual Allowance.

In 2025/26, this means that when your income exceeds £200,000, and your adjusted income (which includes your pension contributions) is above £260,000, the Annual Allowance falls by £1 for every £2 earned above that level. Just remember that the minimum it can fall to is £10,000.

What’s more, if you’ve already started accessing your pension wealth, you may have triggered the Money Purchase Annual Allowance.

This typically reduces the amount you can tax-efficiently contribute to your pension to £10,000 each year.

Compounding returns over time can make pension tax relief even more attractive

One of the most practical aspects of tax relief is that it’s added straight to your pension, where it is usually invested on your behalf by your provider.

Any growth is reinvested, allowing your savings to benefit from “compounding”. This is the “growth on growth” effect that further boosts your returns over a longer period of time.

Standard Life (21 August 2025) gives an example of how beneficial this can be.

If you contributed £200 to your pension each month from age 25 to 65, and your investments grew at an average rate of 5% each year, your pot could be worth around:

• £29,400 after 10 years
• £73,000 after 20 years
• £232,000 after 40 years.

While you might imagine that your pot would grow from £73,000 after 20 years to £146,000 after 40 years, it would actually increase in value significantly more. This is thanks to compounding returns and long-term growth.

As such, making regular payments, starting early, and making full use of tax relief can all improve your financial security later in life.

Get in touch 

We can help ensure you’re claiming all the pension tax relief you’re entitled to, helping you secure peace of mind for your retirement. Please get in touch to arrange a meeting.

We provide a free one-hour consultation with an independent financial planner. Its a great opportunity for you to have a personal conversation. You may come away with a clearer understanding of how much you should contribute to your pension to achieve the retirement you want.

Call our team: 01244 347 583 |  info@innesreid.co.uk | Send a message

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More on tax and pensions

Guide download – Everything you need to know about the State Pension

How much should you contribute to your pension?

Is the default pension fund right for you?

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Workplace pensions are regulated by The Pensions Regulator.

The Financial Conduct Authority does not regulate tax planning.

The post How pension tax relief could boost your retirement income appeared first on Innes Reid.

After a remarkable career spanning more than four decades, it’s time to celebrate Clive Kingsbury as he steps into retirement, a milestone that feels perfectly apt for someone who has dedicated so much of his life to helping others plan theirs.

Clive joined Innes Reid in 2020, bringing with him a wealth of experience and a genuine passion for retirement planning. As a Fellow of the Personal Finance Society and Chartered Financial Planner, Clive has guided countless clients through some of the most important financial decisions of their lives. His relaxed, engaging manner, combined with his deep expertise, meant clients could always feel confident that their plans were in safe hands. For Clive, planning was never just about numbers it was about people, their dreams, and the reassurance of knowing their future was secure.

Starting his career at Bradford and Bingley in Leeds 1982, Clive enjoyed an outstanding career across the financial services industry. At Close Brothers Asset Management, he served as Regional Director for Northern England and Scotland. Earlier still, he played a pivotal rote at Nelson Money Managers, Clive progressed from Financial Planner to Regional Manager and Sales Director, shaping the business and supporting clients as they navigated major life transitions.

Educated at Liverpool Bluecoat School and the University of Kent, and holding both the Chartered Financial Planner designation and the Diploma in Financial Planning, Clive has always embodied the highest professional standards our industry aspires to.

Clive’s career has been remarkable not just for its length, but for the impact he’s had on the lives of those he’s advised. It’s wonderfully fitting that someone who has spent so many years helping others reach their retirement goals now has the opportunity to enjoy his own retirement to the fullest.

From all of us at Innes Reid, thank you, Clive for your wisdom, your guidance, and your unwavering dedication to our clients and colleagues. We hope your retirement is every bit as rewarding, exciting, and well-planned as the futures you’ve helped so many others achieve.

Here’s to long walks, new adventures, and plenty of time to enjoy all the things you’ve worked so hard to plan for!

The post Clive Kingsbury at retirement appeared first on Innes Reid.

There are several ways you might create a guaranteed income in retirement – here are three common options.

1. State Pension

While the State Pension often isn’t enough to cover all of your retirement spending, it can provide a reliable base income.

The new full State Pension pays an income of £230.25 a week in 2025/26. To qualify for the full amount, you’ll need to have 35 qualifying years on your National Insurance record. If you have fewer years, you’ll usually receive a portion of the full amount.

You can use the government’s State Pension forecast tool to understand how much you could receive and when you can claim it.

As well as providing a regular income from State Pension Age until you pass away, the State Pension is valuable because, under the triple lock, it’s guaranteed to rise by at least 2.5% each tax year. This annual increase helps maintain your spending power in retirement.

2. Defined Benefit Pension

If you have a defined benefit (DB) pension, also known as a final salary pension, it will provide you with a guaranteed income from the scheme’s pension age until you die.

The way your income is calculated varies between schemes, but it’s often linked to your average salary and how long you’ve been contributing to the pension. Usually, the income is linked to inflation, so the amount you receive will increase annually.

Compared to other pension schemes, DB pensions are often generous, and the guaranteed income they provide could put your mind at ease if you’re worried about financial security in retirement.

In addition, DB pensions may offer other valuable benefits. For example, some schemes will continue to provide a guaranteed income to your spouse or civil partner if you pass away first.

3. Annuity

If you have a defined contribution (DC) pension, you’ll have a pot of money you can use to create an income once you reach 55 (rising to 57 in 2028).

There are several ways you might access the money held in a DC pension, including purchasing an annuity if you value a guaranteed income.

Once purchased, an annuity will provide an income for the rest of your life. The income it provides will depend on annuity rates at the time of purchase. Rates can vary significantly between providers, so shopping around could help you get the most out of your money.

You can select an inflation-linked annuity so that your income rises each year, or a joint annuity, which would continue to pay a reliable income to your partner if you pass away first.

Income flexibility may suit your retirement lifestyle

We can work with you to create a retirement plan that’s tailored to your financial circumstances and lifestyle goals. Whether a guaranteed income is a priority or you’d prefer flexibility, please contact us to arrange a meeting with one of our financial planners.

Talk to our team today to arrange your free one-hour consultation. Its a great opportunity for you to have a personal conversation face-to-face or online with a financial planner. You may come away with a clearer understanding of your circumstances and a welcome reassurance moving forward.

Call our team: 01244 347 583 | Send an email: info@innesreid.co.uk | Send a message

We hope you enjoyed this article. For more, subscribe to our latest insights and follow us on Facebook, Instagram or LinkedIn

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The post How to create a guaranteed income in retirement appeared first on Innes Reid.

Losing track of your pensions can be costly. Across the 3.3 million pension pots considered lost, the average fund value is £9,470 – rising to £13,620 for those aged 55 to 75.

By consolidating multiple workplace and private pensions into fewer schemes – or even just one – you could make it easier to track and manage your retirement savings. Additionally, bringing multiple pots together may help you grow your funds more efficiently and reduce your administration fees.

Generally, you can consolidate any defined contribution (DC) schemes, regardless of whether they are workplace or private pensions. However, pension consolidation may not always be appropriate, with a variety of fees, rules, and the potential loss of benefits to consider.

Read on to discover three reasons why pension consolidation could boost your retirement income, and when consolidation might not be appropriate.

1. It’s often easier to manage your pensions and calculate whether you’re on track

By bringing more of your pension pots together under one provider with a single set of rules, features, and benefits, you may be able to simplify your pension management.

According to an August 2022 study from Standard Life, the average person in the UK changes jobs every five years. As a result, people often accumulate multiple workplace pensions throughout their working life – making it easy to lose track over the years.

With fewer pension providers, policy details, and fund values to keep track of, you can reduce the administrative burden of managing multiple pensions. This helps you maintain a clear view of your total retirement funds and monitor how well your investments are performing, while reducing the risk of losing money in forgotten pots.

With a greater understanding of how much you currently have, you can more easily determine how much you need to grow your funds to achieve your retirement goals.

2. Your money could have higher growth potential if it’s all invested in one place

Generally, investment options vary from one pension to another. While some older pensions may be limited to investment funds managed by the provider, others could offer a wider choice and more flexibility for you to decide where your pension is invested.

Some schemes may perform better than others, delivering a higher rate of return on your pension savings. Additionally, having a larger pot may present more investment opportunities, with some requiring a minimum investment size.

Plus, since your investment returns compound over time, consolidating your pensions could enable them to grow more quickly.

Indeed, by moving more of your funds into a pension that offers potentially higher returns, you could accelerate your pension’s growth. According to HM Treasury in May 2025, the average earner could boost their retirement savings by £6,000 through consolidating their funds.

3. You might pay reduced fees

When you have several pension pots, you could unnecessarily pay duplicate fees. Each scheme generally comes with varying administrative charges, ranging from less than 0.5% to more than 1% of your fund. Typically, older pensions are likely to have higher fees.

While individual fees may sometimes appear nominal, the amount you’re charged is likely to grow as time passes and your fund value increases. Considering you could be paying such fees across multiple schemes and over several years, the total charges paid over your lifetime can be significant.

However, some schemes may also charge an exit fee. For pensions set up before 31 March 2017, you could be charged up to 10% of your fund. If you set up your scheme after this date, or are aged 55 or over, exit fees are capped at 1%.

As a result, consolidating your pension pots can boost your retirement savings by reducing your costs. However, choosing which plan to transfer your funds into requires careful consideration.

The benefits of pension consolidation depend on your circumstances

Consolidation isn’t appropriate for everyone. In some cases, partial consolidation can be a good option, whereby you bring some of your funds together while leaving other pots separate. For some people, consolidation might not be necessary at all.

Smaller pension pots

If you have pots worth less than £10,000 and plan to withdraw from them before retirement, it could be worth leaving them separate from your other funds because of the “small pots exemption”.

As of 2025/26, you can generally draw down up to three of these pots in your lifetime without triggering the Money Purchase Annual Allowance (MPAA). This allowance permanently reduces the amount you can pay into your pension tax-efficiently from £60,000 to £10,000 a year.

Defined benefit schemes

If you have a defined benefit (DB) pension, consolidation is unlikely to be a sensible option. Unlike DC schemes, DB pensions generally offer a guaranteed retirement income based on your salary and years of service with your employer.

In fact, you may be required to seek advice from a qualified financial adviser before transferring funds out of a DB scheme that contains over £30,000.

Your current workplace pension

If you and your employer are still contributing to a workplace pension, it may be worth keeping that scheme open. By closing it to consolidate with other funds, you’ll likely surrender your employer contributions, which may prove significant over time.

Protecting scheme benefits

In some cases, your pension schemes may offer valuable guarantees or benefits that are more common with older schemes, such as:

• Guaranteed annuity rates
• The ability to access your funds before age 55, although this is rare
• Flexible ways to take retirement or death benefits.

If it’s not possible to consolidate your other pensions into your preferred scheme – for example, if your employer is contributing to a different pot – it might be worth leaving your funds where they are.

It’s often worth seeking advice before consolidating

While pension consolidation may deliver a range of administrative and financial benefits, creating a strategy for bringing multiple pots together can be complex.

There are a variety of rules, fees, benefits, investment opportunities, and personal factors to consider before consolidating. In fact, in September 2025 IFA Magazine reported that poorly informed pension transfers made in the year to 30 June 2025 may have cost savers £1.7 billion.

By seeking guidance from a qualified financial planner, you could help determine the most effective consolidation strategy for your needs and circumstances. Get in touch to learn more about how we can support you in boosting your retirement funds.

Talk to us

Talk to our team today about pension consolidation. We provide a free one-hour consultation with an independent financial planner. Its a great opportunity for you to have a personal conversation. You may come away with a clearer understanding of your circumstances and a welcome reassurance moving forward.

Call our team: 01244 347 583 | Send an email: info@innesreid.co.uk | Send a message

We hope you enjoyed this article. For more, be sure to subscribe to our latest insights and follow us on Facebook, Instagram or LinkedIn

Please note

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Workplace pensions are regulated by The Pensions Regulator.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The Financial Conduct Authority does not regulate tax planning.

The post How Pension Consolidation Can Maximise Your Retirement Savings appeared first on Innes Reid.

Data published by PensionsAge in June 2025 suggests that only 47% of UK savers are aware of their options in retirement. In addition, just 27% said they understood the reforms and the implications.

The decisions you make at the start of retirement could affect your financial security for the rest of your life. So, the research suggests a worrying number of retirees could pick an option that isn’t right for them because they don’t have all the information they need.

You can usually access defined contribution pensions from age 55. Read on to find out more about the three main options.

1. Purchase an annuity

If you’d prefer to receive a regular income that you know you can rely on, an annuity may be a valuable option.

You can purchase an annuity with the money held in your pension, and it would then provide an income for the rest of your life. You can choose if you want this income to remain the same or rise in line with inflation each year.

The annuity rate affects how much income you’d receive, and it’s influenced by a variety of factors, such as your age. Annuity rates can vary significantly between providers, so comparing options with your financial planner could help you achieve a higher income in retirement.

In addition, you can select a joint annuity, which would continue to pay your partner a portion of the regular income, such as 50%, if you pass away first. This could be a valuable option if you’re planning for retirement with a partner and they rely on your income.

2. Take a flexible income using flexi-access drawdown

You can also take a flexible income from your pension, so you might increase or decrease the amount you withdraw depending on your needs.

While this flexibility is attractive to many retirees, it’s important to consider how sustainable your pension withdrawals are. You’ll be responsible for ensuring you don’t run out of money in the future. According to PensionAge, 45% of survey participants said they worry that the ability to take a flexible income would leave them without enough.

The money that you don’t withdraw will remain in your pension and is usually invested. This means it has the opportunity to deliver long-term returns, but that your money is exposed to investment risk.

So, while flexi-access drawdown gives you more freedom to use your pension savings how you wish when compared to an annuity, it comes with potential drawbacks too. A retirement plan could help you balance your short- and long-term income needs when using flexi-access drawdown.

3. Withdraw lump sums

Finally, you can withdraw lump sums from your pension when you choose.

This could be a useful option when you want to boost your income for a one-off cost. In 2025/26, you can withdraw up to 25% of your pension tax-free, and you may choose to do that as a lump sum.

A June 2025 article in IFA Magazine found that more people are withdrawing lump sums from their pension as soon as they can. 120,000 people in the 12 months to the end of March 2024 did so, collectively accessing £2.2 billion.

While taking a lump sum can certainly be tempting, especially if it’s tax-free, you need to weigh up the pros and cons of doing so.

Taking a large amount out of your pension could mean you risk running out of money in your later years. Not only would the value of your pension be lower immediately, but it could also affect the long-term investment returns, which might mean you have less in your pension in the future than you anticipate.

You can mix and match the 3 ways of accessing your pension

You don’t have to choose just one of the above options when deciding how to create a pension income. You can mix and match – you might even decide to use all three.

For example, you might withdraw a lump sum at the start of retirement to kick off the next chapter of your life. You could use it to travel, renovate your home, or tick off some of the bucket list items you’ve been looking forward to.

Next, you might use a portion of your pension wealth to purchase an annuity that would create a reliable base income. Finally, you may access the money that remains in your pension flexibly and adjust to suit your needs.

A financial planner could help you assess which option is right for you

Even after understanding what your options are, it can be difficult to know which one is right for your retirement plans.

Working with your financial planner to create a bespoke retirement plan could mean you feel more confident accessing your pension and understand the effect your decisions might have. Please contact us if you have any questions about your retirement and accessing your pension.

We provide a free one-hour initial consultation, with no obligation to work with us thereafter. Its an opportunity for you to understand how financial planning could work for you and if we’re the right fit. Speak to our team today to arrange your free consultation.

Call our team: 01244 347 583 | Send an email: info@innesreid.co.uk | Send a message

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The post How to access your pension appeared first on Innes Reid.

It’s an exciting time, but it’s also important to evaluate your decisions and consider how they could affect your long-term plans. Indeed, spending too much too soon could lead to a shortfall later in life.

Usually, you can access your pension from age 55 (rising to 57 in 2028). For many people, this milestone will come before their planned retirement date.

Yet, January 2025 research from Legal & General suggests 1 in 5 people access their pension at 55.

32% of those withdrawing from their pension at 55 said it was to cover essential expenses. However, 46% simply said they did so “because they could”.

Worryingly, 27% of UK adults aged over 50 make decisions about their pension without seeking any advice or guidance. It could mean a significant proportion of those accessing their pension as soon as possible don’t fully understand the long-term implications it could have.

If you’re thinking about withdrawing money from your pension, here are three potential risks to consider first.

 1. It could increase your risk of running out of money later in life

Pensions are often among the largest assets people own. So, it’s not surprising that some look at the value and believe they have enough to splurge.

Yet, it’s important to consider why you’ve saved into a pension – to create financial security once you give up work.

If you start accessing your pension at 55, you could be at greater risk of facing a shortfall later in life as it’s likely to need to last several decades. Indeed, according to the Office for National Statistics, the average 55-year-old woman will live until they’re 87. For a man of the same age, life expectancy is 85.

Even if you don’t plan to take a regular income from your pension straightaway, withdrawing a lump sum can have a significant effect on the value of your retirement savings.

Your pension is normally invested with the aim of delivering long-term growth. Taking a lump sum could mean investment returns are lower than expected, which, in turn, may lead to a lower income when you retire.

That’s not to say you shouldn’t access your pension at 55, whether you want to use the money to travel or start reducing your working hours. However, understanding the potential long-term implications of doing so and how it might affect your retirement lifestyle is important.

2. You may face an unexpected tax bill

You can usually withdraw up to 25% of your pension without facing a tax bill, either as a lump sum or spread across multiple withdrawals.

However, if you exceed the 25% tax-free portion, your pension withdrawals may become liable for Income Tax. According to the Legal & General study, around a third of those accessing their pension at 55 are withdrawing more than 25%.

The withdrawal above the tax-free amount would be added to your other sources of income when calculating your Income Tax liability. So, you might want to consider whether it would push you into a higher tax bracket and increase your overall tax bill.

It’s also worth noting that if you receive means-tested benefits, taking a lump sum or income from your pension could affect your entitlement – something a quarter of people didn’t realise.

3. It could limit how much you can tax-efficiently save in your pension

Accessing your pension might reduce how much you can tax-efficiently contribute to your pension each tax year.

In 2024/25, the pension Annual Allowance is £60,000. This is the amount you can personally contribute while retaining tax relief benefits. However, you can only claim tax relief on up to 100% of your annual earnings.

You can normally withdraw your tax-free lump sum from your pension without affecting the Annual Allowance, but if you take a flexible income, you might trigger the Money Purchase Annual Allowance (MPAA).

The MPAA is just £10,000 in 2024/25. As a result, it can significantly reduce how much you’re able to tax-efficiently add to your pension and it might negatively affect your retirement income.

Financial planning could help you understand the effect of accessing your pension at 55

One of the challenges of understanding whether accessing your pension sooner is the right decision for you is that you often need to consider the long-term effects.

Financial planning could help you see how accessing your pension at 55 might affect your long-term finances and review other options as part of a wider financial plan. If you withdraw some of your pension now, it could help you feel more confident, or you might decide an alternative option makes more sense for you.

If you’d like to access your pension, we’re here to help you calculate the potential long-term consequences and more. Please get in touch to arrange a meeting.

Call our team: 01244 347 583 | Send an email: info@innesreid.co.uk | Send a message

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

The post The potential perils of accessing your pension at 55 appeared first on Innes Reid.

Today’s retirement comes with more choices than ever. From knowing how you’ll meet your day-to-day income needs to paying for later life care and passing inheritance to loved ones. A new survey by Abrdn has found the confidence in financial readiness to retire has fallen.

How much will you need?

Despite the State Pension increasing by 3.1% in April, inflation is currently surpassing 6% – meaning the value of the State Pension is also declining in real terms. That’s why beating the rising cost of living through clever decisions and professional support has never been more important!

Using the latest available data the full State Pension is £9,399 per year, the chart below shows how much extra an individual will need to meet the retirement lifestyles set out by the Pension and Lifetime Savings Association (PLSA) Retirement Living Standards.

Advice from the recently retired…

Understanding what current retirees have found challenging can help you to prepare for what’s ahead. Before retiring, three stand out decisions surpassed all other things on their “to do list”:

Last year’s retirees faced a particularly challenging set of circumstances to navigate. However, a lack of confidence when approaching retirement and making big life decisions is not something new. It is this cloudy uncertainty that often brings many of our clients to their first financial planning meeting with Innes Reid.

The decision to retire is not one to be taken lightly. Significant thought and preparation are needed for this major transition. As Financial Advisers, it’s not only our responsibility to take on the burden of your finances but to instil a greater confidence as you approach retirement and as you evolve throughout.

Top 5 concerns of current retirees

On average 40% are spending more than they expected in retirement. With the main reasons being:

Retirement is what you make of it.

We know many people are not even discussing retirement with loved ones, let alone seeking professional advice. Speaking to an Independent Financial Adviser can help set retirees up for a better retirement both financially and emotionally, and help you to feel more confident as a result.

Retirement is changing, some choose to set up a new business, others pursue working part-time or spend more time with grandchildren. Whatever your plans for retirement, it is what you make of it.

As Independent Financial Advisers it is our role to get you there with a plan that is robust, stress-tested and tailored to an ever-changing life. We can help to resolve your concerns about retirement and ensure you have financial security at the point of retirement and into the years that follow.

Contact our team today to book a complimentary meeting with one of our expert Independent Financial Advisers. Your first meeting with us is free, with no obligation to join us. Book here today>> or call our team 01244 347 583.

This article is not personal advice. If you are unsure what’s right for you, please seek personal financial advice.

Source: Abrdn, Pensions and Lifetime savings Association.

The post Only a quarter feel confident to retire appeared first on Innes Reid.