As summer comes to an end and we get back into work mode it is great to look back at a couple of weeks spent stocking up on some valuable R&R (rest and recreation).
But what if you had an absence from work that was more long-term? This could be planned, such as retirement, or sprung on you due to things like illness or an accident.
It is vitally important that you review areas such as your financial protection and retirement planning arrangements to ensure you and your loved ones are provided for should these events arise – whether foreseen or otherwise.
You may be lucky enough to have a range of benefits provided by your employer – such as a company pension scheme, death-in-service cover or income protection – but it is worth considering whether these provide adequate provision for you and your family.
Even if you have protection in place, when were these plans last reviewed?
The cost of life assurance has come down in recent years and income protection benefit is by its very nature based on your income, which may well have changed over time.
You may find yourself with too little cover, or paying for benefits at a level that you will be unable to claim for.
While a pension plan is primarily designed to fund an income for you when you stop working, it is also one of the most tax-efficient “investments” available in the UK. It is worth reviewing your arrangements to make sure you have maximised the available tax savings and, with markets more volatile than ever, checked underlying investments still meet your needs.
It is also crucial to make sure any pension arrangements, whether current or from previous employment, are on track to provide the retirement income you need. You may be looking to retire with a particular level of income in mind, or you could have pension funds left over from previous employment which require regular reviews.
Legislation is constantly evolving and some important changes came into effect from April 2015, affecting how benefits can be taken.
At Mattioli Woods, we can provide advice and in all of these areas.
We have our own suite of retirement and investment solutions, and are able to access products from the wider marketplace to suit individual clients’ needs.