Most people know what they want to do in retirement but making sure they have enough set aside to meet those expectations is vital.
Ensuring clients have a plan in place to fund their retirement is one of the most important roles an adviser has but so often, people do not prioritise building up a sizeable pension pot early enough.
Whatever the size of their savings, the pension freedoms have given retirees more options - whether that means going into drawdown, purchasing an annuity at retirement, combining both strategies, or even working for a few more years to meet income needs.
Kim Lerche-Thomsen, chief executive at Primetime Retirement, explains: "It is always beneficial for retirees to endeavour to save for as long as possible.
"During retirement, individuals can also look to using products which provide them with a guaranteed income, such as fixed-term annuities, as part of their retirement portfolio, while using the rest of their savings to invest and grow until the later years of retirement.
“On top of this, it is essential that customers are aware of ways to use their entire portfolio of assets to generate income in the most efficient manner. This can include making decisions that consider how their entire retirement collection might interact with taxes, striving to make their retirement savings as tax-efficient as possible.”
"It is important to remember that the size of a customer’s pension pot is not necessarily an indication of their overall financial wealth," points out Emma Byron, managing director for retail retirement income at Legal & General.
"The individual must take into account all of their financial assets when making retirement decisions. Unfortunately, there is no one-size-fits-all solution for customers, so we need to help them navigate these complex decisions."
This special report on investing for income in retirement looks at how advisers can help their clients to boost even the most meagre of pension pots and what to consider when planning a sustainable income in retirement.
The report qualifies for an indicative 30 minutes' worth of structured CPD. To read it, simply click on the image above and then complete the questions below.