What should you consider when thinking about your attitude to investment risk

Your view of risk in finances is personal. It's one that's often influenced by emotions, but other areas should play a role too. When you're considering how much risk to take, what factors influence you? We all know that taking too much risk for your situation can lead to losses. However, so can not taking enough risk. Rising inflation means the spending power of cash is eroded. With low interest rates, many cash savings have lost value in real terms in recent years. Investment returns that don't keep pace with ...

Supporting your family financially without putting your security at risk

Baby boomers want to pass on their wealth now, helping their loved ones improve their financial security. But many are worried about how gifting will impact on their own lifestyle and security. Choosing to gift wealth away rather than leave an inheritance has clear benefits. First, you’ll be able to see the impact your generosity has on the lives of your loved ones. Secondly, an inheritance is likely to come too late for many beneficiaries. With younger generations struggling to step on the property ladder, pay off debt and juggle ...

Why your 30s are the ideal time to boost savings

Research suggests that those in their 30s are the most disciplined savers. It’s often a time that’s marked by greater financial security and planning for the long term. It means that your 30s are an ideal time to start increasing how much you put into a savings account, plus there are benefits for getting into the savings habit sooner. According to research from Charter Savings Bank: Those in their 30s set aside 58% of their disposable income each month; compared to the national average of 42% With ...

The importance of considering care when calculating retirement income

Have you ever considered about the cost of care you may need to pay later in life? It’s not something anyone wants to think about but it’s becoming increasingly important. As life expectancy increases, more of us will need some form of care as we enter our later years. It’s a service that many are likely to need to pay for either wholly or partly themselves. However, according to research from Which? millions of people are underestimating the cost of paying for a care home. It's a ...

Using Drawdown to provide you with a retirement income that will last

Since the introduction of Pension Freedoms in 2015, using Flexi-Access Drawdown has become an increasingly popular way to access retirement savings. But research suggests that some could be withdrawing too much, putting them at risk of running out of money. Flexi-Access Drawdown allows you to leave your pension invested and adapt how much income you take from it over time. For pensioners that want flexibility and greater control over their retirement finances, it's proved a popular option. However, it does come with the responsibility to ensure that a sustainable level ...

Seven steps to take if you plan to retire in 2019

A New Year is just around the corner and if you’re planning to retire in 2019, there are some steps you should be taking. Being prepared and understanding how your retirement provisions will support you can help you achieve the retirement you’ve been looking forward to. Among the steps to take as you approach this milestone are: 1. Planning your ideal retirement When you think about retirement it can often seem like it’s in the distant future. If you haven’t thought about what you’d like your retirement to look like, now is ...

Why investing remains important throughout retirement

An increasing number of retirees are choosing to take money out of their pension to use as income rather than opt for an Annuity or leave it invested within their pension fund. But putting the money into cash assets could mean you risk losing out in the long run. It’s understandable that investment risk can seem like a gamble when you’re in your retirement years, whether it’s invested through your pension fund or you’re taking control of investment decisions. However, keeping at least a portion of your pension invested should ...

How to support your family with making the right inheritance decisions

When you think about leaving your loved ones an inheritance, you probably hope it will improve their financial security and provide them with more options to enjoy life. But research suggests future beneficiaries are making reckless decisions in the belief an inheritance will support them down the line. A survey from the Daily Mail found: A third of millennials expecting to inherit wealth admit they take more risks with spending and investment The figure rises to 49% among those with assets over £100,000 27% invest their money ...

Retirement is changing: Have you factored this into your plan?

Not so long ago, retirement followed a fairly similar path for most people. You gave up work on your retirement date and used your pension to purchase an annuity, providing you with a guaranteed income. But times have changed. Today, you have more flexibility when it comes to your retirement. However, it brings more complexity too. Traditional models for retirement planning are fast becoming outdated and it’s clear that a singular approach won’t suit everyone. A focus on what you want to achieve is important. How has retirement changed, and how ...

Why putting a windfall in a pension could mean reaping more in the long run

If you received an unexpected windfall what would you do? Despite placing it in a pension being far down the list for most people, it could be one of the most prudent decisions. Just one in 20 people receiving £25,000 would choose to put it in a pension, according to research from Lane, Clark & Peacock. Young people, perhaps unsurprisingly, were the most likely to shun pensions. Just 2% of those aged between 18 and 24 would do so; the same portion would choose to gamble it. ...
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