What on earth is pound cost ravaging?
It's the name given to the effect on your pension pot when you withdraw capital in a falling market. By taking regular withdrawals whilst the market is falling, the financial implications for your retirement pot can be dramatic, you only have to get a few years of bad returns in the early years of your retirement and it may be almost impossible to recover, even though the longer-term average returns from your investments may remain strong.
You must remember that you're effectively selling your assets when they are worth less. This is because when the price of each unit that you hold is lower, more needs to be sold in order to reach your required level of income. Unfortunately, most savers simply assume that if they select a modest level of regular income, regardless as to what happens in the markets, that they'll be able to carry on indefinitely. In reality, taking regular withdrawals in times of market stress can destroy the health of your pension pot and therefore, investors must regularly adjust their retirement plan and investment strategy to avoid the real risk of running out of money whilst retired.
By speaking with one of our Independent Financial Advisers we can tailor retirement advice specifically to you.
There are now many ways in which you can access your pension:
Purchase an Annuity
An annuity is your traditional way of using your pension benefits to provide your income in retirement. Put simply, you use your pension funds, in full or in part, to purchase a guaranteed income with an Annuity provider either for life or for a fixed term. Whilst your existing provider may offer you an Annuity, did you know that actually you can shop around and find the best deal for you. We use sophisticated research tools to analyse the open market to help find the most suitable annuity for you.
Capped Drawdown
Whilst Capped Drawdown is no longer available for new retirees, if you are currently in Capped Drawdown then we can still offer you advice.
Flexi-Access Drawdown
This type of access is designed to offer you an ongoing and flexible income that can be stopped, started, or altered to suit your changing needs. Your funds remain invested allowing you to withdraw only what is needed.
Lump Sum Withdrawals
Sometimes in life, we need a little bit more cash, like settling debt or paying off your mortgage. Whatever your reason, we can discuss how best you can do this in the most tax-efficient way or whether there is an alternative option you may not have considered.
We're located in Wakefield
Athelward Suites East & West,
Estate Yard, Nostell, Wakefield,
WF4 1AB
Opening Hours
Monday - Friday: 9am - 5:30pm