Why the Right Pension is Crucial to a Successful Retirement

Pensions can be complex savings vehicles with even benefits and advantageous features sometimes being difficult to comprehend.

This is borne out by so-called ‘pension freedoms’, which have caused confusion for around two-thirds of over-55s in the UK and made it difficult for savers to plan their retirement.

This is why it’s important for prospective retirees to simplify their retirement plan, initially by choosing the right type of scheme. In this post, we’ll talk about the best pension schemes in the current climate, and ask why you should seek advice when planning for your future.

What are the Best Types of Pension in 2018?

Make no mistake, choosing the right pension plan is central to a successful retirement plan, particularly in the current climate. After all, workplace pensions are at risk of a growing deficit at present, while state pensions are being squeezed by austerity and a lack of economic growth in the UK.

With disposable income levels also dwindling, you need to identify flexible pension plans that can optimise your returns over time. One of the best examples is a self-invested pension plan (SIPP), which is an agile savings account that gives almost complete control to clients. Not only this, but a SIPP will also offer access to a wider and more diverse range of assets, including both domestic investment options and those located overseas.

Clearly, this type of pension plan offers significant value in 2018, particularly for clients who have experience of making investments and navigating the financial markets. After all, these individuals can leverage this insight to seize control of their pension funds while relying on expert advice from their chosen service providers.

Why You Should Rely on Financial Advice

The concept of taking expert advice is an important one at every conceivable stage of the pension planning process. You should not be afraid to liaise with service providers like Tilney when choosing your type of pension plan, and they can also help you to make the most of any assets that you hold outside of a SIPP or traditional scheme.

As you grow older and continue to work, expert financial planners can explain the benefits of potentially invaluable features such as salary sacrifice. This is an option through which employees sacrifice a small amount of their monthly wage in exchange for tax breaks and potentially higher pension contributions, so it’s worth considering when planning for your retirement.

This is just a small example of how financial advice can help you when planning for retirement as you look to make informed choices that create a secure and lucrative future.