Pensions and investments are an integral part of the wills and probate process, and plans consumers make in early adulthood can greatly affect not only their own income after retirement, but also what they leave behind.
It is crucial for all adults within the UK to be aware of the trials and tribulations of their investments, which truly come to light when receiving in-depth financial planning advice. Ensuring your clients don’t fall short when it comes to preparing for income and inheritance later in life is a key priority.
It’s been reported by Hargreaves Landsdown, a UK financial service provider, that one in three people who were born in 2013 will reach 100 years of age — meaning pensions will have to stretch further and further as the nation lives longer. When offering your services to clients, it’s important to look at the wider picture and assess whether their current financial choices are really right for them. Identifying and advising against the main pitfalls could save your clients vast amounts of money in the long-run.
According to the Hargreaves Landsdown report, two-thirds of retirees have experienced a significant loss of income from when they were working — with 21% having income slashed by more than half. Early planning and putting away enough to see them through old age are actions many of your clients will need to be advised on, as these are some of the main issues people face. Not only will they need to consider their own living expenses, but also care costs and funeral expenses, among other things that are often left with the family to cover.
Other considerations advised include ensuring you help your clients to check and review their pensions and investments and alter their wills as their circumstances change. Consider the percentage of growth in savings, as well as the effect of inflation. Consumers should be aware that pensions in particular can fluctuate and contingencies can be put in place if their final investment isn’t as expected. Looking into the quality of pension service and what your clients are getting for their money could make a substantial difference to their bequeathed estate.
A smart financial decision means having a range of investments in place to use when a person retires, say experts. Property and inheritance can be used to fund retirement, but both come with their setbacks. Unstable markets and rising care costs could lead to consumers earning less than originally projected. Having various options in place, as well as a clear plan on what will happen with each when the person is deceased, is integral for protecting assets and ensuring loved ones benefit as well.
Making the most of what is offered by your employer and the Government is also an important factor for your clients’ retirement funds. By 2018, all companies within the UK are obliged to provide pension contributions for their employees and tax relief on pensions under current legislation means your clients could receive up to 45% into their pension pot, from the Government, depending on their tax rates.
