Retirement guide - December 2011
With dissent in the public sector over upcoming changes to schemes, protests about changing retirement dates and a very public debate on the fees being charged for, often underperforming, pension funds, pensions are rarely out of the newspapers at the moment.
With investment markets showing no signs of stabilising soon, it is difficult to see where the safe havens lie for those wanting to derisk their pots in the run up to retirement. This is something that Pádraig Floyd explores in his article.
Another large impending change set to hit the market is the onset of auto enrolment. The move will bring many more people into the pensions market, with recent launches now seeing NEST as not the only contender in the market. However, many businesses, particularly small and medium sized companies, are not aware of the truck of legislation and red tape about to hit them. Bob Campion explores the opportunities that this presents for advisers, in both advising on the schemes and administering them.
While the focus in the mainstream press is currently firmly on getting more to engage more with pensions and how this cash is then invested, little mention is made of the pension income buying process. Too many people are either missing out on advice when it gets to the annuity buying stage or are not being guided to the right options, seeing them lose out massively on their annual income, something that Money Management examines.
While annuities need to be explored further, the drawdown process has also changed dramatically, providing opportunities for advisers to review the new system. With flexible drawdown likely to only appeal to a few affluent individuals and capped drawdown now offering little more flexibility than an annuity, scheme pension could be a real overlooked option, as Mary Stewart finds.
What is more, in these uncertain times, many want to take the investment decisions into their own hands, leading to a huge growth in the SIPP market, something that Martin Tilley explores in the supplement.
Whatever the issues, it seems that the time for change in pensions is upon us. It is just the direction that it takes.
IN THIS REPORT
As a baby boomer, Janet Walford OBE has good reason to be keenly interested in everything to do with retirement planning
Pensions auto enrolment will have a major impact on corporate and personal pension business. But there is still room for IFAs, says Bob Campion
Retirement is a daunting prospect when financial markets offer little security for savings. This is where advice from advisers can play an...
SIPPs are a booming market, having seen huge popularity in recent years. But can this be sustained? Martin Tilley takes a look
The focus at the moment is firmly on putting more cash away for retirement, but valuable retirement funds can be wasted by failure to shop around...
Changes to drawdown and current low investment returns are not making life easy for retirees. Mary Stewart looks at the options
With reduced annual allowance and income tax thresholds, lowering tax bills is more important than ever. Bob Campion looks at how to circumvent the...