We explore how a sensible drawdown strategy can be constructed from your
retirement savings. What is a realistic income level to target? For most people,
life after work – or even life with less work – is a marathon, not a sprint and there
are dangers in shooting out of the blocks too quickly.
A desire to pass on wealth is one reason some people may consider transferring
from defined benefit to defined contribution pension schemes. However, defined
benefit schemes confer valuable benefits, so we look at the pros and cons of this
option on page 16.
Pensions typically sit outside the taxable estate for inheritance tax purposes, so
when it comes to inheritance planning, it’s very important that you make use of
the often overlooked Expression of Wish form. We review how crucial it is for
ensuring that your pension goes to the right people.
These are interesting times. Low interest rates may make it a challenge to achieve
a sustainable income, but on the other hand, many opportunities come with
flexibility and choice. A little planning for your future and that of your loved
ones can go a long way.
Please remember the value of your
investments and any income from
them can go down as well as up and
you may get back less than the
amount you originally invested.
All investments carry an element of
risk which may differ significantly. If
you are unsure as to the suitability
of any particular investment or
product, you should seek
professional financial advice.