The state of the nation.

On April 6th, the earliest age people can draw pension benefits rises from 50 to 55.

If you’re 30 now, you might file that under “whatever”.

If you’re between 50 and 54 now, you might want to think about whether the change will affect you.  Obviously, the younger you are, the longer you will have to wait to draw your pension.

The pension companies are already busy with this work, tons of people need information – at least – and some are choosing to, er, board the flight if you’ll forgive the metaphor.

If you are affected, don’t leave it until the last minute to think about it.

News, What's on my desk right now 06/04/2010, age 50, pension, retirement

I’ve four similar cases on the go at the moment, all at different stages, all investing for long-term income.

Drs H invested for income two years ago, when he retired.  Our second annual review will be on Friday.  I’ve begun preparing for that, with a performance review of all the funds and holdings within the funds.  Their brief was a sustainable income, with a long retirement in mind, so plenty of scope for the income to rise to keep pace with inflation. (Although, they haven’t started spending the income yet.  Maybe this time?)

Mr & Mrs S are new clients.  They’ve recieved a lump sum from an injury settlement, so it’s not a cheerful time.  They need a modest income, from a portfolio that can cope with changes in their objectives.  We’re at the begining of the planning process.

A different Mr & Mrs S need more income, so we need to change their investment brief.  They want a high level of income now, but with limited scope for protection from inflation.

Finally, Mr & Mrs M retired five years ago, but have been managing without an income from their investments.  Their children would rather that Mum & Dad enjoy the money, instead of struggling without it.  So, we’ve agreed to chase a useful level of income now, with some scope for protection from inflation.

Four customers, similar ages, similar wealth levels, and broadly similar objectives.  But there are some crucial differences, aren’t there?  They’re the bits I enjoy coming to work for!

What's on my desk right now Business/Finance, income, inflation, portfolio, retired, retirement

Here’s an example of why you should not take the first offer when you draw your pension.

Names have been changed to protect the innocent.

Mr A decided to draw his pension.  Read more…

Case Studies annuity, open market option, retire, retirement

You might have noticed a bit of a drop-off in share values lately?

If you’ve got a pension, it’s probably worth less than it was a year ago.  So why bother paying any more in? Or, if you’re young enough, why bother starting one?

Forget, for a minute, that “pensions” usually seem to be over-priced contracts, of more benefit to the pension provider than to you.

For example, consider the sentence Read more…

Building Wealth pension, property, retirement, savings