When can I retire?

As you get older you will start to wonder when you can retire. This is a big question and determining when you can retire can be realised with the help of an Independent Financial Adviser.

You can access a personal pension from age 55, with this rising to age 57 in April 2028.

You can access your State Pension from age 66, with this rising to age 67 between 2026 and 2028.

The State Pension

You can find out your State Pension entitlement and when you can access via this link: Check your State Pension forecast - GOV.UK (www.gov.uk). You will need your National Insurance number to be able to check this out.

To get a State Pension you will need at least 10 qualifying years’ worth of NI contributions and 35 years to get the full State Pension, which is now £179.60 pw.

The State pension is paid automatically to your bank account every 4 weeks, in arrears. The State Pension is not taxable but does use up your personal allowance of £12,570.20.

Personal Pensions

Your Personal Pension is different, and you can access it earlier than the State Pension.

Planning your retirement is not an easy job. Have you considered:

- Do you need a lump sum?

- How much tax-free cash do you have?

- How much income you can take?

- How long will your fund last you if you take your fund in a flexible manner?

- Who do you want to leave your pension to on death?

- What other pension plans do you have?

- What other resources do you have?

- What debt/liabilities ,if any do you need to pay off?

- What do you want to do in retirement? What is important to you?

The above can be overwhelming for you tackle on your own. That’s why talking to an Independent Financial Adviser can help you understand what exactly it is you want.

You may have more than one pension and combing them into one pot is often a goal of many who wish to simplify their pension provision.

Having one pension to manage is often much easier than a few dotted about with different providers, different charging structures and different investment strategies.

However, when consolidating your pensions, it is important to lift the bonnet and understand what is in the engine.

Do you have any guarantees or exit penalties that will affect you once you do move these pensions from their original scheme? That is something a Financial Adviser can find out.

How do I know when I can retire?

We start this by working out exactly what you have and what you want to do. Working with an adviser can help you determine this. The first thing we do is find out who you are, your circumstances and your objectives.

We then ask you to consider what income will give you the retirement you want.

We then work out what is achievable from your pension pots.

Running out of money?

This is key for anyone. We can use cash flow modelling to determine how long a Drawdown pension will work and last for you, building in all your income resources.

If you would like to get in touch with an independent financial adviser to find out more about your options in retirement, you can give us a call on 0191 380 4106, or alternatively email us at enquiries@7fp.co.uk.

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