Retirement Planning « Campbell Harrison

Archive for the ‘Retirement Planning’ Category

Retirement Planning is Number One Advice Driver

Monday, June 21st, 2010

A recent online survey has revealed that retirement planning has once again been named as the number one advice driver for individuals searching for an Independent Financial Adviser (IFA).

The questionnaire was conducted amongst users of professional advice website, unbiased.co.uk. Of those visitors who were using the ‘find an IFA’ service, 35% were looking for retirement planning advice more than any other service when looking online.

Closely behind retirement planning, the results showed that the second most popular advice driver was investment planning and savings advice from which a quarter (25%) of users was looking for an IFA specialising in this area.

Financial planning can often be a complex area which is why the need for independent financial advice continues to be high as more and more consumers consider investments and long term financial planning for retirement.

With the coalition government ringing the changes across UK policy and talk of an emergency budget being declared, it is likely that consumers will be scrutinising their finances to help understand if and how the government’s changes to pensions and capital gains tax could affect them.

Retirement planning can be a daunting exploration for most individuals. Seeking advice from an independent financial adviser can help you explore fully, all possibilities available to you and your circumstances.

If you would like advice on retirement planning or investment planning in general, please feel free to call one of our expert advisers on 0114 272 3994

Tags: Financial Planning, Investment Planning, Retirement Planning, Savings
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Bad Financial Planning Could Lead to Retirement Poverty

Monday, June 21st, 2010

Concerns have been raised recently after a study by financial experts revealed that thousands of workers in the UK are ‘walking blindly’ into retirement poverty because of their failure to plan their future finances properly and save into a pension.

The survey questioned 7,500 workers across 10 European countries from which it was discovered that the UK had some of the highest levels of pension’s indifference in Europe.

The questionnaire revealed that one in five Britons are not sufficiently planning for their retirement because they could not afford to in the current state of economic recovery, while 12% stated that they hadn’t actually got around to starting a pension.

Of the UK workers questioned as part of the survey, 12% declared an open interest in pensions, whereas nearly half (47%) of participants said that their employer currently provides them with one, a low figure when compared with the fact that it is now a legal requirement for all workers to have access to a pension scheme.

Analysing the results, 5% of participants completely dismissed the idea of retirement planning by stating that they were simply going to live off the state pension when they were older and so hadn’t looked into any other form of investment planning.

In contrast to those individuals who were not looking to participate in a pension scheme, 4% of British workers said that they put a large amount of their income into a pension pot because of the tax breaks available from doing so.

With the newly elected coalition government looking at ways to reduce pension obligations, it is imperative that individuals begin to take more responsibility for their retirement finances or face the very real prospect of ‘walking blindly’ into retirement poverty.

For further information regarding retirement planning and financial planning in general, please contact one of our expert advisers on 0114 272 3994.

Tags: Investment Planning, Pensions, Retirement Planning
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Low Earners Could Face Pension Fee

Wednesday, March 24th, 2010

A flagship scheme aimed at persuading millions of low paid employees to consider their life after work and save for retirement has recently come under fire after the government revealed that all contributions would be subject to a 2 percent fee.

The new fund, set up by the National Employment Savings Trust, could end up becoming an expensive way of saving for some people due to the upfront charges that may lead to reduced retirement savings. As a result this may have a detrimental effect on future investment planning and deter individuals from saving rather than encourage them.

Despite the reservations put forward by financial advisors, between three million and six million people are expected to join ‘Nest’ as the Government plans to force all employers to enrol employees in a workplace savings scheme from 2012.

Nest will be the default option for any employer unable to offer employees alternative retirement saving schemes. So far however, the Government has refused to pay for any of the start-up costs and is instead offering a loan to the scheme. The initial 2 percent fee would help repay the loan and once the loan is paid in full, Nest will drop any further fees.

Financial analysts have been quick to criticise the new pension proposition by arguing that many of the low earners that the scheme is targeted at, will risk losing future benefits should they join. Further criticism is drawn from the fact that employers with in-house pension schemes may choose to downgrade their own financial terms to the level set by Nest.

For further advice on retirement planning or investment advice in general, please don’t hesitate to contact us on 0114 272 3994 to speak to one of our financial advisors.

Tags: Investment Planning, pension schemes, Retirement Planning
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Expat Britons Lose Battle for Pension Rights

Wednesday, March 24th, 2010

More than half a million expatriate Britons were left reeling with a sense of injustice this week after their long and arduous claim against the British Government for equal pension rights was dismissed by the European Court of Human Rights.

The legal action brought by the group of British expats was in relation to the current ‘frozen pensions’ policy affecting mostly retired Britons living in Commonwealth and former Commonwealth nations. Even though they previously contributed to Britain’s mandatory National Insurance Scheme during their working lives, their current pensions during retirement, are not indexed annually against inflation.

The appeal bench at the ECHR found that Britain’s long standing ‘frozen pensions’ policy was therefore not discriminatory.

The legal ruling brings to a close an epic legal fight mounted by various British pensioner organisations based in Australia, Canada and South Africa, who continually argued their case for parity through several appeal courts. Should their legal action been successful, they could have expected to receive an extra £200 million in pension payments this year.

The decision by the ECHR has not been looked upon favourably by Commonwealth governments who believe that the final judgement could be discriminatory as it continues to place an increasing burden on their respective nation’s taxpayers.

Tags: pension schemes, Retirement Planning
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At Long Last…. An Improvement in Pension Fund Finances

Monday, February 1st, 2010

It has come as a welcome relief this week for both potential and current investors of pension schemes, that after countless months of negativity, the financial position of final salary pension schemes in the UK has improved sharply over the past two months according to reports by the Pension Protection Fund (PPF).

Reasons for the Increase?

Such news has come at a time when it has recently been announced that the UK has emerged from the recession, with economic growth being recorded at 0.1% over the last 3 months of 2009. The PPF acknowledged this as a contributing factor in the fortuitous rise of pension schemes positions, but also stated that improvements could also be down to higher share prices and improved returns on government bonds (gilts).

With a direct impact on personal pension plans, the financial recovery has yielded higher returns on UK government bonds, which in effect has meant that the cost of paying for pensions in the future has dropped by nearly 6%.

Volatile Market

Over the past two years especially, pension planning and investment has been a particularly cautious topic for many people as pension fund finances have been extremely volatile.

Pension funds are susceptible not only to the fluctuation of assets traded on the financial markets, they also respond to assumptions used to estimate the cost of supplying future pension plans. The emergence of a huge deficit within the economy, that according to experts cannot be effectively controlled, has led many employers to close the doors on all final salary pension schemes, which has also had direct repercussions for financial investment and pension planning.

With the potential volatility ringing in many people’s ears, and recent announcements calling for over 65’s to carry on working, the news of strong equitable returns and rising gilt yields from investment schemes has been more than a welcomed sigh of relief for pension members.

Tags: Investment Planning, pension schemes, Retirement Planning, Savings
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More Flexibility for Retirement Savings?

Wednesday, December 9th, 2009

At Campbell Harrison we are always keen to keep an eye open for all things financial. It was intriguing therefore to see this week the discussion topics from the Tax Incentivised Savings Association (TISA) pre budget report.

The report was conducted amid calls for the government to draw up a national savings strategy and review income replacement policies.

Desired Outcomes

Upon submitting the report, TISA reiterated their on-going support for the notion of a workplace ISA which would help contribute to a more flexible savings approach to help finance retirement.

The original idea of a workplace ISA was proposed by TISA back in 2008 as a method of complementing the existing pension system. Senior officials believe that the newly proposed system of retirement savings will provide a less restrictive saving option, encourage more people to pursue retirement schemes and raise awareness of taking more responsibility for your retirement years.

The desired Working ISA has been greeted with a mixed response, dividing opinions across a number of levels. Favourably for TISA, reports have suggested that the proposal has been growing in support amongst some labour and conservative officials.

What the Saving Scheme would involve

Guidelines for the new retirement plan would involve the ISA commencing at age 18 and would cease with a defined age of 65 for example, or upon reaching the state retirement stage at the time.

When the policy holder has reached the previously defined age, the funds would convert into a standard ISA under the proposed guidelines, which would then allow the individual to select an ‘income in retirement’ option that would most suit them and their future lifestyle.

On top of the working ISA, the pre budget report conducted by TISA is also advocating that the government establish a retirement savings review to consider the effectiveness of current saving and investment schemes as well as pension policy.

Interesting times ahead for the savings and investment market it would seem as the debate for a working ISA and savings strategy continues.

Tags: Investment Planning Sheffield, Retirement Planning, Savings
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Planning for the Future

Tuesday, November 17th, 2009

From their first day of work, right until their last, a majority of people are planning for the future and thinking of life beyond work. People choose to plan their retirement in different ways, with some investing money to form a portfolio and other’s choosing the option of a pension fund. There are the lucky few however that are unexpectedly handed an instant retirement plan……by winning the lottery!

When it was announced earlier this week that a syndicate of seven office workers based in Merseyside had won an astonishing £45m on the Euromillions lottery, the first thing they did was announce their intention to quit their jobs and retire. With a cool £6.5m each to enjoy, each of the lucky winners were left contemplating a life of leisure and luxury. It also left the team at Campbell Harrison wondering that depending on age (the winner’s ages ranged from 19 – 57), how big a win would mean you could bring forward those retirement plans and never have to work again?

Apparently we weren’t the only one’s discussing this, as quite usefully, an economics analyst has recently put together the relevant figures to answer such a question.

The Analysis

Taking into account the average life expectancy of males and females and the national average wage for both sexes, which is currently £21,244 for men and £17,104 for women (after tax and National Insurance contributions), the results showed that a win of £554,676 for a 40 year old woman willing to take a risk on investments, would provide a pension scheme large enough to provide her with an average wage every year until she died. In comparison, for a 21 year old man wanting a risk free return, the size of the win would need to be just over £2 million.

The rest of the results concluded that:

·   A 21 year old man would need a win of £2,019,117
·   A 40 year old man would need a win of £1,268,780
·   A 21 year old woman would need a win of £1,658,201
·   A 40 year old woman would need a win of £1,069,225

Which Retirement Plan?

Not everybody will be lucky enough to win the lottery so they have to plan for their future a lot more carefully. Different people have differing attitudes towards financial risk. Some are willing to make high risk investments in the hope of even higher rewards, whilst others like to make low risk investments for a guaranteed rate of return.

So which investment plan would suit your needs and future aspirations regarding retirement? The most common form of investment made for retirement is a pension plan.

Pension Schemes

Pensions are the most common form of retirement plans in the UK and are taken out to provide a steady income for the policy holder beyond their working life. The amount of money contributed varies between individuals, depending on income, attitude to risk and any plans for retirement.

Investment Portfolios

A common alternative (sometimes as well as) to taking out a pension is by creating an investment portfolio. This form of retirement plan centres on the individual’s attitude to risk as the uncertainty regarding future income is greater, but the potential financial rewards make investment an attractive proposition. Investment portfolios are also preferred by others as they can be handed down to family members and so is viewed as providing for your family’s future as well as your own.

At Campbell Harrison, we are proud to boast a speciality in retirement plans. Our dedicated team take the time to find out your hopes for the future and help find the best retirement plan to help meet these aspirations.

As famous American clergyman Harry Emerson Fosdick once said, “Don’t simply retire; Have something to retire to”.

Tags: Investment Planning Sheffield, pension schemes, Retirement Planning
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Investment Planning Essentials

Monday, November 9th, 2009

As successive governments seem so happy to keep reminding us, too few people are planning their finances properly, if at all, especially with regards to their inevitable retirement. An investment now is an investment for the future, and one that should help maintain a good quality of life beyond your working days.

Specialist Investment Advice

The team at Campbell Harrison are proud to specialise in both retirement and general investment advice, ensuring we do what is right for the customer every time. Assessing each client’s goals and aspirations is important in helping to make the right investment decision, and so we endeavour to take the time to sit down with individuals to discuss the best plan options available, dependant on their financial goals and personal risk.

Saving and investment planning is concerned with being able to balance the risks you are comfortable with, alongside the potential rewards that can be attained in the future. As a general rule, it is cautiously advised that the higher the risk, the bigger the potential rewards but also the greater the potential losses.

Investment Models

There are several models of investment planning that can be designed to provide for future monetary requirements including stocks, bonds and property portfolios. At Campbell Harrison in Sheffield though, as well as promoting these investment packages, we like to see ourselves as experts in retirement incentives such as pensions. When considering a life after retirement, everybody wants to relax and enjoy themselves and so it is important to choose the right mix of asset classes that not only create wealth but also generate more than enough income when they cease their career.

Which Investment Package is Right for You?

When deciding which investment package will most suit the individual, their age and stage of career are two important elements that help determine the correct plan. If you are young and in the early stages of your career, you generally have the advantage of time on your side. Sometimes however, the ‘goal horizon’ for a 30 year old investor can be the same as for a 60 year old investor depending on their risk tolerance and current financial situation. It’s never too late to start investing.

Do you like our introduction to the financial advice Campbell Harrison of Sheffield can provide?

Why not get in touch to see if we can help further with your desired investment plan.

Tags: Investment Planning Sheffield, Retirement Planning
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