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5 reasons why you should think about getting financial advice for your pension

Taking care of your pension is one of the most important things you can do when markets have fallen. We look at five ways an adviser can help you through uncertain times.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Now more than ever, the future seems uncertain. If your pension has taken a hit during the coronavirus pandemic, making informed decisions sooner rather than later could make a big difference to the quality of your retirement.

If you’re sitting on the fence about whether to take financial advice, we look at five ways an adviser can help.

This article isn’t personal advice. If you are unsure if a course of action is right for you, please seek advice.

1. More confidence in your decisions

When you have a financial expert working with you, they can help you implement a strategy for your pension which is designed to withstand market volatility. Many of our advisers’ careers have spanned previous marketing crashes and while history never repeats itself exactly, they’ve gained valuable experience along the way.

History aside, our financial advisers have studied hard to work in their field. Their detailed insight and understanding of the market can save you time and help you meet your financial goals.

As with all investing, you could get back less than you put in, and you shouldn’t take any risks which you’re not comfortable with.

2. Bring an objective view of the market

When the market falls, it might be your first reaction to push the panic button and make a rash decision. This is known as “emotional” investing and can lead to bad investment choices.

A common mistake is selling your investments right after the market’s drop in the fear that there might be another dip. But generally this just means you lock in a loss and haven’t given your investments a chance to recover.

Having the objectivity of a financial professional can be worth its weight in gold at times like this. A financial adviser will be able to present all your options and explain how they have tended to react in different market conditions.

Whether you’re retiring soon or you’re already in retirement, an adviser can help make sure you stay on focused on your long term plan and help you separate emotions from your decisions.

3. Make sure you’re not missing out on tax breaks

Saving money on tax shouldn’t be underestimated. But as tax rules tend to change constantly it can be difficult to understand how they affect you. And as rumours are already starting to spread about whether taxes will go up - it’s now more important than ever not to miss out on the tax breaks available to you.

Although advisers don’t have a direct line to the Treasury, they can help you make the most of current tax rules. For example, an adviser can give you a detailed explanation of the tax benefits a Self-Invested Personal Pension (SIPP) can bring .

In simple terms, most people can invest up to £40,000 per tax year (in 2020 / 2021) without having to pay UK tax on income or capital gains. And you can even take out a lump sum of 25% tax-free after you turn 55 (rising to 57 in 2028).

Tax rules change and benefits depend on individual circumstances. We can advise you on how to make use of your tax allowances through financial planning but if you need complex tax calculations, we recommend consulting an accountant or specialist tax adviser.

4. Get the right timing for retirement

Recent market falls may have made you nervous about your pension pot. When markets are volatile, accessing the cash from your pension pot at the right time is essential.

If you’re nearing retirement, you’ll need to get your level of risk right to get you through at least the first few years of your retirement or until the market recovers.

An adviser can look at your retirement timescales and help you understand if your plans are still achievable or if you’ll need to makes changes or delay those plans.

5. More personal advice, built around you

We all have different needs, preferences and dreams especially when it comes to retirement.

Some will have a strategy to meet those needs, others won’t. If you don’t have a strategy, it’s not too late to make one, having an expert by your side could help. Whatever your goals for retirement, everyone’s current circumstances are different and market volatility only further highlights the importance of expert help.

While there’s a wealth of information on our website and across the internet, an expert can create a bespoke plan. Our experts are highly experienced and qualified to help you find the best plan for you, no matter where you are in your journey.

Book a call with us today, there’s nothing to lose and you could stand to gain more than just peace of mind. Whether it’s putting you in touch with our advisers or showing you where to find the tools and information you need to do it yourself - we’re on hand to make the process as effective and efficient as possible.

What you do with your pension is an important decision. You need to make sure you understand your options and their risks, so you can make the right decisions for your situation.

Like with any big decision, it can help to talk things through. The government offers a free service, Pension Wise, giving impartial guidance to help you make sense of your pension options.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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