A New Year, A New Pension?

New Year Resolutions

As we approach 2018, our minds turn towards the future and away from the day to day concerns of living.

With a new year comes a fresh opportunity to get your finances in order, and with more than 90% of Britons not saving enough for the retirement income they are aiming for, why not take the opportunity to focus on your pension?

These essential tips could help improve your pension for 2018:

Combining your pensions into one makes it easier to keep track of investment performance and value. Having one account to check and manage is much more straightforward than having numerous pensions with different providers.

Knowing exactly how much your pensions are worth in total is vital as you get closer to retirement. By consolidating your pensions first, you can spend more time carefully assessing your needs and understanding your options at retirement. With the AAM UK Pension Audit Service you can easily consolidate your existing pensions into one pot.

The AAM UK Pension Audit undertakes extensive analysis of information supplied by your existing pension schemes, using a comprehensive Pension and Investment planning system, to provide you with a completely unbiased evaluation of your options.

Should our analysis determine that it is in your best interests to transfer your pensions to a new scheme, we will provide you with a detailed review of your current UK Pensions, explaining why you should do so and setting out our recommendations.

To find out more about whether you should consolidate your UK pensions speak to your AAM Financial Planner or contact wealthsolutions@aam-advisory.com

How your pension performs can make a huge difference to your final pension pot. The AAM UK Pension Audit puts you in control, with a wide range of investments available.

You can choose from over 10,000 funds, thousands of UK, US and European shares, exchange traded funds (ETFs), corporate bonds and gilts. Our team of analysts search the market for what we believe are the best funds in all major sectors to recommend the best portfolio for you.

With our investment partners, you can buy and sell funds using a low cost dealing service, there is a low-cost reinvestment service, and dealing in shares can cost as little as 0.01%. We have also arranged discounts on the charges on most leading funds.

To find out more about making your investments work harder for you, speak to your AAM Financial Planner or contact wealthsolutions@aam-advisory.com

If you get a pay rise, do you increase the amount you are saving towards your retirement?

Even a small increase in savings each year can have a large impact on your fund value with a little help from compound investment returns with any growth or income being reinvested year on year. That said, all investments go up and down in value, so you may end up with less than you invested.

Why not ask your AAM Financial Planner to show you our pension calculator to see how much difference an increase in contributions can make?

If you have any questions, please do not hesitate to speak to your AAM Financial Planner or email us at wealthsolutions@aam-advisory.com

The Telegraph offered a simple piece of advice on how to make your retirement savings last. It passed on this advice from an American commentator, who suggests putting the equivalent of three years’ spending into a cash account separate from your long-term retirement portfolio. It’s very rare that a ‘bear market’ lasts longer than this, so you can avoid withdrawing cash at a time when prices are down, and so avoiding the ‘risk of ruin’.

Speak to your AAM Financial Planner, or contact wealthsolutions@aam-advisory.com, to arrange your UK Pension Audit to ensure that you won’t be undone by the “Risk of Ruin”.

“Spend everything else first and the cash you have in your pension fund last”, says the Mail. That, it says, is the advice the experts are handing out because of the 2015 pension rule changes.  The key reasons are that once you’ve taken your tax-free cash, any other withdrawals from your pension fund are subject to income tax; any capital left in your pension fund on your death passes to your heirs outside your estate and thus avoids inheritance tax and withdrawals of cash from ISAs bear no income tax. However, structuring the right withdrawal plan from pensions and other investments requires expert assistance thanks to the UK’s complex tax rules.

Speak to your AAM Financial Planner, or contact wealthsolutions@aam-advisory.com, to receive your Wealth Preservation Strategy and ensure that UK Inheritance Tax doesn’t decimate your legacy.

Six out of ten adults in the UK have not made a will, says the Mail. Many believe family or friends will decide how their assets are divided, but they are wrong, that will be determined by the ‘intestacy rules’ for anyone who dies without a will in place. Spouses usually automatically inherit property and joint bank accounts, but people who are cohabiting do not have the rights of legal spouses and this is a major source of problems.

Is your will fit for purpose? Speak to your AAM Financial Planner, or contact wealthsolutions@aam-advisory.com, to arrange to have your will updated to match the reality of your life as an Expat.

Ian Black
Head of Financial Planning & Wealth Solutions
AAM Advisory Pte Ltd

Sources:
http://www.moneywise.co.uk/news/2014-04-30/90-brits-not-saving-enough-retirement
http://www.telegraph.co.uk/pensions-retirement/financial-planning/two-simple-tricks-help-investors-avoid-running-money-retirement/
http://www.thisismoney.co.uk/money/pensions/article-5062781/Spend-pension-pot-defend-savings-taxman.html
http://www.dailymail.co.uk/femail/article-61590/He-wont-make-will.html

Disclaimer:
The views expressed in this article are those of the author and do not necessarily reflect the views of AAM Advisory Pte Ltd. This document/article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any securities/products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed financial adviser regarding the suitability of the investment product before making a commitment to purchase the investment product. Past performance is not necessarily indicative of future performance. Any prediction, projection, or forecast on the economy, securities markets or the economic trends of the markets is not necessarily indicative of future performance. Whilst we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data.