Do you like the things that life is showing you?
Where are you going to?
Do you know?

One of the good things about working from home during lockdown has being able to sit in the conservatory with the radio on in the background.

I was listening to a tune which inspired me to write this post.

It was the theme from Mahogany (Do you know where you’re going to?) by Diana Ross.

It struck a chord with me (see what I did there!) as I’d been speaking to a client about their pension and asked the question, “do you know what happens to your pension when you die?” They hadn’t thought about that, so I thought I’d ask some more questions about pensions and do a couple of follow-on pieces with the answers and why you should seek independent regulated financial advice.

So –

…do you know what happens to your pension when you die?

Does it die with you, can you pass it on to your loved ones, do they need to pay tax on that, does it leave a smaller widow’s/widower’s pension and if so, how much?

Do you know how much is in your pension pot?

Many people don’t and can be either surprised by the large amount or shocked by how small it is. Is it going to be enough to support you in retirement or could you actually consider retirement now – or at least go part-time or leave a job you currently despise and use the fund to subsidise something you’d enjoy more?

Do you have a number of pensions from jobs you’ve had in the past?

If so, do you know how much is in each one, how they’re performing and whether they suit your current attitude to risk?

Do you know what type of pension you’ve got; especially if you’ve got more than one?

Is it a Defined Contribution (DC pension) or is it a Defined Benefit Pension (DB pension) and if so, do you know what that means?

Do you know when you’ll get the State Pension and how much that will pay?

Especially important if you’ve had a break in your career or are considering early retirement.

Do you know the difference between an annuity or a pension that allows you to drawdown funds?

Do you know if there are any alternatives to annuities or drawdown? Do you know if you can mix them?

Do you know at what age you can access your pension?

Many people will say 55 if it’s a personal pension, but do you know that changes are coming so that you can only access your funds 10 years before you draw your state pension?

Do you know how your pension is taxed whether you take it as a lump sum or as income?

Do you know how much, if anything, you can take as a tax-free lump sum?

Do you know if you can take out all your money in one-go?

Do you know what the position is for smaller pension pots of under £10,000?

Do you know what would happen to yours or your partner’s pension in the event you divorce?

Do you know how much you can pay into your pension, either annually or in total?

Do you know why you need independent regulated financial advice?

“If you don’t know where you are going, it doesn’t matter which road you take, does it?” said the Cheshire Cat to Alice.

Here are three things you need to know about independent professional financial advice and why it’s really important:

1. Firstly, knowing what to do with your pension fund can be quite daunting. It’s a big decision involving a lot of money, so making the right choice is really important.
2. Having an independent financial adviser will ensure that you get the most out of your hard-earned pension savings. We’ll advise you on the best solution and help you to make an informed decision.
3. Our financial advisers are experts regulated by the Financial Conduct Authority, so you can trust them to provide you with a personal recommendation that’s right for you. This will give you confidence that you have made the right choices towards a safe and secure retirement. They work on your behalf to help meet all your retirement needs while protecting you from the costs of fraud or scams.

Don’t forget, the initial discussion with us to assess your circumstances is free and if you want to proceed our adviser will make it clear as to how much you’re paying and what it’s for.

As the song says:

Do you get what you’re hoping for?
When you look behind you there’s no open door
What are you hoping for?
Do you know?

What’s next?

Do you know that you can pay our fee direct, from your business, or if you prefer, we can discuss the pros and cons of opting to pay it out of your pension pot, so there are options if money is tight at the moment?

Contact Markland Hill Wealth for an independent, regulated, free review of your later life planning. We will carry out a thorough review of your current circumstances, including any personal pension plans, employers’ schemes, auto-enrolment pension and your State Pension entitlements.

We’ll research the whole of the market to find a solution that reflects your current financial circumstances and lifestyle.

Get in touch with the team through www.marklandhill.com with the subject ‘Later Life Review’ and we will contact you to help guide you through your financial future.

The information in this article should not be regarded as financial advice.

Laws and tax rules may change in the future. Your own circumstances also have an impact on tax treatment.

Markland Hill Wealth is a trading style of UK Investment Solutions Ltd (no 09305214). UK Investment Solutions Ltd is authorised and regulated by the Financial Conduct Authority (reference 830162). Any marketing material, including our website, is for information purposes only and cannot be relied upon as constituting financial advice.