Consider the bigger picture.

15th October 2014

In the new issue of ‘How to Retire in Style,’ Jonathan Watts-Lay, Director, my wealth talks about how individuals need to think about the bigger picture when considering their retirement options.

Watts-Lay comments: “Giving individuals power over the biggest financial decision of their lives is great but with it comes a huge burden of responsibility. Financial education, and the right advice, has never been more important. It could be the difference between a comfortable retirement – and a potentially very difficult one.”

Watts-Lay says that before anyone takes cash from their pension they need to have a plan for it. “If you’re going to take all, or a big chunk of your cash, you need to ask yourself what you’re going to do with it. If you are taking money out of a tax-free environment into one that is taxed, is there any point.”

Watts-Lay says this flexibility allows investors to alter their income as and when their sending changes. “Generally, people have a ‘U-shape’ income requirement in retirement,” he explains. “Initially, they spend a lot, then it slows, then in old age they need more care.”

Jonathan Watts-Lay continued “Don’t just think about your pension – think about all your assets and your partner if you have one.  Why do it right now if you have other sources of income?  You may have investment income, a rental property, or you might have ISAs you can cash in.  When you draw down money from your ISA is it tax free.”

To find out more please click here.

IMPORTANT –External links please read: Virus status