Suitable products could include pensions, ISAs, Unit Trusts/OEICs, onshore and offshore savings plans.
Pensions have received a lot of adverse publicity in recent years to the extent that many people have been put off saving for retirement. However, this is stocking up problems for their future. The average man reaching age 65 in 2010 will live for 20 more years (22 for a woman). The state in 2009/10 will give you £130pw (if you have no other income and minimal savings).
This means that many people will live almost a quarter of their lifetime in near poverty.
It is true that some old style pension products suffered from:-
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high commissions paid to salesmen
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high and complex charges
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poorly performing investments
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penalties for early retirement
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guarantees so restrictive as to be almost worthless to the average couple
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no ongoing reviews.
However, this is not true of the products that we will recommend. We guarantee that:-
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our remuneration will be agreed with you before you make any commitments
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charges will be reasonable and transparent
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the underlying investments will be suitable for you as an individual
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there will be no early retirement penalties
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we will discuss an agreed programme of ongoing reviews.
We can help you:-
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estimate your retirement income in today's terms based on your existing plans
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estimate any shortfall in your target retirement income
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estimate how much you need to save to achieve your target
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recommend a suitable plan to meet any shortfall
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review the ongoing suitability of your existing plans
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understand the risks involved in switching (or leaving) existing plans
Our experience of reviewing existing personal plans has shown that approximately 75% of would be better off by switching and 25% would be better off by staying with the the existing plan.
Old Company Pensions
In the past, when reviewing preserved company defined benefit pensions, our experience has shown that only about 10% of people would be better off by transferring. However, this is changing as transfer values offered by company trustees are increasing, as is the risk that the sponsoring employer is unable to meet his liabilities. The scheme is then required to fall back on the Pension Protection Fund which results in a loss of benefits for the members.
When reviewing preserved occupational pensions we will make no charge for an initial assessment. If the transfer value appears to be reasonable versus the promised benefits, with your agreement, we will charge a fee of £200 to perform a full in depth analysis. This will provide you with a factual basis to decide whether to transfer the plan or leave it with your former employer.
