Pensions

‘’The aerarium militare was the military treasury of imperial Rome. It was instituted by Augustus, the first Roman Emperor as a “permanent revenue source” for pensions (praemia) for veterans of the Imperial Roman army’’ (Source Wikipedia)

Moving forward over two millennia and we still have the same need, to make provisions now for the future. A pension can be as individual as you are but the fundamentals remain the same, it is a pot of money built up through your working life to pay you an income in retirement, simple. What is not quite so simple is finding the right plan and investments for you, both in the way you build your ‘pension pot’ and how you take your benefits from it in retirement. In reality money saved without growth is vulnerable to inflation, £100 in 20 years time will not have the same purchasing power as it does today and so the money you save needs to grow at a rate either equal to or greater than that of inflation. So what is your appetite for risk? How capable are you of absorbing losses? How much can you save and what are your goals in retirement? These are just some of the conversations we will have to start to build your future.

‘’I think I have a Final Salary Scheme what does that mean?’’ It can mean lots of things as there is not just one type but as a rule of thumb it means that your pension at retirement and the income you receive will be linked to your salary dependent on contributions made during your employment.

‘’I’ve had lots of different jobs and I have loads of different pensions, I don’t really know what I’ve got, can I get them all put in one pot’’ You can and it can be a really good idea, you may have investments within your pension schemes that no longer match your attitude to risk or it may be the case that your schemes are invested in badly performing funds. However some schemes may have benefits that could make transferring to another scheme a bad idea. You do not have to know which benefits your schemes currently have, we can gather that information on your behalf and assess whether your current pensions are in line with achieving your goals.

‘’I’d like to retire as soon as possible’’ Great, that is a start. It is part of our job to advise you on when this would be possible. What are your financial aspirations in retirement? How much money do you need to live the life you want in retirement? What are your assets and liabilities? These are just some of the conversations we would have before we could put a plan together that’s right for you.

‘’How much will my state pension be and when will I get it?’’ This is essentially two questions. As with any pension the amount you receive depends on the contributions that you have made. By filling in a BR19 form and sending it to the Department of Works and pensions, or by logging onto the State Pension’s link at the bottom of the home screen you will receive not only a state pension forecast but also details of how you can increase your pension by paying any contributions that have been missed. The age at which you receive your state pension depend on your age, women also receive their pension before men (link to the government website)