In his latest column for Altrincham Today, Jason Moss, an Altrincham-based Independent Financial Adviser (IFA) at Harvest Associates, explains why pension planning doesn't have to be overwhelming when you have the right guidance.
How can anyone be expected to plan for retirement when understanding pensions is so complex? Pensions are a minefield, and it doesn’t help that every government treats them like a political pawn, making changes without considering their long-term impact on the public.
It’s no wonder I regularly meet people who have made decisions that don’t align with their goals. A recent client told me they had taken tax-free cash from their pension, assuming they had to once they turned 55 - without realising it was optional. Another client received a letter from their provider urging them to make a decision about accessing their pension.
Thankfully, as their adviser, I was able to reassure them that there was no immediate need to act. They were still enjoying work and had no plans to retire. The letter was simply triggered by their scheme’s retirement age, but without guidance, many people assume they must act right away, often making rushed decisions.
For those without an adviser, the risk of making reactive choices is high. There are several factors to consider when drawing from a pension, and one crucial rule is that if you access your pension flexibly (meaning you take taxable income), your future contributions are restricted. If you’re still in a position to save, this could limit your ability to build your retirement fund.
One of the biggest issues in the UK financial advice industry is the inaccessible language used around pensions and investments. Too often, people feel disengaged from their own financial future simply because the terminology is confusing.
But retirement planning doesn’t have to be overwhelming - the key is ensuring that every decision is right for you, as some choices have long-term consequences.
My advice? Don’t let the complexity of pensions put you off. Instead, seek help from an Independent Financial Adviser who can explain what your pensions are worth now, what they could be worth in the future, and what options are available to you. Having this clarity gives you peace of mind that you’re on track to achieve your retirement goals.
Unlike some advisers, I don’t charge for an initial meeting. If you’re unsure whether financial advice could benefit you, this is your opportunity to ask questions and understand how professional guidance could add value to your situation. When it comes to your retirement, making informed choices today can make all the difference for your future.
To contact Jason or for more information, email jmoss@harvestassociates.co.uk, call 07703 341 285 or visit harvestassociates.co.uk.
Harvest Associates is authorised and regulated by the Financial Conduct Authority. FCA registered number is 629749. The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
