Personal Pension  

Retirement: Overview

This article is part of
Retirement and Auto Enrolment - October 2013

Most of the general population still appear to lack awareness of their retirement options and, with many now set to be auto-enrolled, plenty are soon likely to take a greater interest.

This includes small firms looking for advice on how to get the most out of the regulations, and the man on the street, who will be seeking to maximise retirement earnings.

The UK’s SMEs are soon to be entering unchartered territory and for the most part will require advice on how to set up a scheme, how to manage it and how to best cultivate a culture of pensions saving among staff. Convincing some smaller companies to part with money for these services will be a challenge, particularly given the financial climate, but if done well could prove to be lucrative for all parties.

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Beyond helping potential new clients find the most suitable pension, there are other scenarios that those closing in on retirement need educating about. The poor rates of standard annuities have been well-documented and help to emphasise the importance of exploring the benefits of other options such as income drawdown, enhanced or flexible annuities and equity release.

The face of retirement is changing and millions of people will soon find themselves saving into a pension they may know little about. Even if many of these new entrants are not considered wealthy, when they find out how much extra money they could save by investing wisely it is reasonable to assume that some will be willing to pay for financial advice.

This presents a potential opportunity for advisers across the UK to lure in new clients and business, while playing a pivotal role in protecting the nation’s financial interests. Opportunities on this scale do not come around often and, with the right approach, could help reinvigorate those advisory firms who have been struggling to attract new clients post-RDR.

In the articles that follow a selection of retirement specialists each explore some of the big topics currently dominating the UK pension debate. This includes assessing how much income is needed to live comfortably, the industry’s role in developing the right tools to facilitate the retirement dilemma and how to get the most out of an annuity.

Other articles, meanwhile, explore making the right investments, opportunities for advisers to display their worth and the pressing issue of longevity.

Daniel Liberto is a features writer for Financial Adviser