Ever since reforms to the Pension industry rules came into force in 2015, those over the age of 55 have been able to ‘dip in’ to their pension pots – but with those extra freedoms has come the temptation to spend in the short term on ‘living today’ rather than in later life. And in a recent report, behavioural analysis suggests that the size of one’s pension pot determines how individuals have been accessing their savings. However the figures also highlight how many people aged 55 or over could benefit from a specialist future forecasting stress test before liberating large chunks of their nest eggs.
Industry expert, Mike Morrison, has recently commented that; “Over the last few years I have become fascinated by how behavioural science interacts with the savings world and the fact we do not act rationally in making financial decisions. “ He goes on to say that; “Pension freedoms have switched the mental accounting of (the) pension pot from a future retirement income choice to a current consumption choice… of being able to access your pension fund via a cash point machine.”
Here at The Financial Planning Group, we have specialist software that can test various scenarios so that sensible decisions can be made on how much money is really enough to enable retirement and to make sure that you won’t run out of money at some point in the future.
We are proud of our reputation of providing independent financial advice and solutions to individuals, families, companies, trustees, accountants and solicitors. We are fee based and unbiased, working with our clients to realise their financial goals by placing their financial affairs in context with their future goals and aspirations.
We provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own future.
If you would like to arrange a pension or investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.