Retirement Planning

Financial security is a goal that we all look to attain. What, where and how are the three common questions that we deal with on a daily basis with clients looking to achieve their required goals at retirement and beyond.

Challenges with the State Pension today

With life expectancy increasing rapidly coupled with relatively low birth rates, between now and 2050 the percentage of the population aged 65 years and above is expected to double.

Source: Prudential Life

This has created an underlying downward trend of employer pension contributions, with the total level of funded pension savings significantly lower than official estimate.

This has the potential to create a situation where many people will face “inadequate” pensions in retirement. This situation will require people to have additional assets outside of their pension savings, or, will create a workforce that intends to retire later than current retirees.

The information above has been taken from the Pensions Commission’s report – A New Pension Settlement for the Twenty-First Century – The 2nd Report. This report also highlights 5 conclusions from its research.

Five key conclusions were detailed through the research:

  1. Current pensioner income levels are on average high by historical standards: and many people approaching retirement in the near future will have good pension provision. But there are significant gaps in the current system, and looking forward the current system of private funded pensions, combined with the current state system, will deliver increasingly inadequate and unequal results.
  2. The problems are not solvable through changes to the state system alone, nor by incremental measures to encourage voluntary provision. But attitudes to further compulsion are ambivalent.
  3. Savings through house purchase and inheritance of housing assets will make a significant contribution to pension adequacy for many people, but are not sufficient answers to the problems with the current pension system.
  4. Long-term pension policy needs to be robust in the face of rising life expectancy and of major uncertainty about the pace of that increase. Longer working lives are an essential but not sufficient element of the response.
  5. International analysis suggests two innovative approaches to the provision of earnings-related pensions from which the UK could learn:
    a.) nationally administered but individually owned accounts; and
    b.) automatic enrolment applied at a national level as well as in individual employer schemes.

Source: A New Pension Settlement for the Twenty-First Century – The 2nd Report of the Pensions Commission

With the changes made in the 2016 budget affecting not only the State Pension, but following on from the changes in 2014 & 2015 there is now more flexibility and pension freedom. These pension changes have raised awareness of pensions and retirement planning, they have introduced policies that now make retirement planning more attractive and aim to give you both greater choice and freedom when it is time to take your retirement benefits.

Do you plan to relying on the State Pension?

From April 2016 the State Pension will pay out a flat rate of £155.65 per week – which is just £8,094 a year. Will this be enough to give you the retirement that you plan?


As we have mentioned in our introduction to the Ethos Effective Planning process, we have regular reviews to discuss progress of the plan(s). We are aware that sometimes personal circumstances do change, as a result we only work with those companies that provide the best of breed products that have ability to adapt to meet these changes should they occur.


With the pension changes that have been introduced over the past few years, there have been a number of products that have become available that you to invest in a pension plan that provide flexibily across the lifetime of the investment. Of course every retirement requiremet is unique in that you have your own personal goals and objectives that you want to achieve over a timeline that you have set. We have a great team that will work closely with you put together a plan that will be tailored to your specific requirements and designed around your personal goals, objectives while still taking into consideration your risk profile. Why don’t you book a meeting with us, get to know us and see what we can achieve for you?


As we mention in Step 4 of the Ethos Effective Planning process, we will conduct regular meetings and reviews with you. However, our work does not stop there! Our team are constantly reviewing and monitoring clients’ investments so that we adjust them according to market changes. We understand that immediate changes in personal circumstances are stessful and combined with the impact on retirement plans can become overwhelming. We have experience in this area and are always on hand to be able to discuss your concerns and make the changes that are required.

The Ethos timeline

We are privileged to have worked with clients from their various stages of retirement planning through to the enjoyment of their retirement lifestyle and Inheritance Tax planning.

Retirement can be one of the most enjoyable and fulfilling stages of your life. It could offer exciting new opportunities and the financial freedom to fulfil your dreams; book a meeting with us and let us help get you there.