Issue 15 n JULY/AUGUST 2015
The financial magazine from Fairstone Financial Management Ltd.
Top tips to make the most of pension freedoms Nation of savers
Maintaining dividend growth
Focusing on the long term for a more secure future
Rewarding investors in UK-listed companies
Passing on your pension savings
Pension earmarking orders
Itâ€™s never been more important to plan whom youâ€™d like to inherit them
Inside the minds of savers and investors
Divorcees may need to take action to protect benefits following pension reforms
Advice Areas At Fairstone we can advise on all aspects of your finances, taking you and your family from cradle to grave with the most suitable financial solutions that will help you make the most of your money. We pride ourselves on offering the most appropriate advice on your finances - whatever your circumstances - for now and for the future, so that your financial goals and aspirations are met. Because we are completely independent, this means we can access the whole of the market and find you the most viable financial solution, whatever your needs. This means you save time and money. We can advise on all your financial needs, including:
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Bespoke financial management with ActivePlan ActivePlan provides the ongoing and consistent review of your entire financial portfolio to ensure that your products are actively managed to be cost effective, well performing and appropriate to your needs. With financial products constantly evolving and with lower cost options being continually launched, we want to ensure that you feel the benefit of these wherever possible. And with your personal circumstances and objectives differing from time to time, you need your finances to fully reflect any such change.
protect your income, then we can help.
Savings and investments
Making the most of your finances
Our highly qualified professionals can really help
At Fairstone we will pro-actively manage your
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mortgage, insurances, investments, savings,
advice on savings and investments vehicles
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such as ISAs and Authorised Unit Trusts, Open
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Ended Investment Companies (OEICs), Bonds,
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is why over 77 per cent of customers use it. Benefits include: n a six-monthly financial health check and a full annual financial review n u nlimited and direct access to a financial adviser during working hours.
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1 The Bulrushes, Woodstock Way, Boldon Business Park, Tyne & Wear NE35 9PF Telephone: 0845 6050689 Email: firstname.lastname@example.org Fairstone Financial Management Limited is authorised and regulated by the Financial Conduct Authority (FRN 475973) Levels and bases of and reliefs from taxation are subject to legislative change and their value depends on the individual circumstances of the investor. The value of your investments and income can go down as well as up and you may get back less than you invested.
Inside this Issue
Ten tips to make the most of pension freedoms Planning for retirement in the new pensions landscape
Contents 04 P lanning your
09 N ation of savers
Focusing on the long term for a
Will the pension reforms have an
more secure future
effect on retirement planning?
09 P assing on your 05 F airstone achieves chartered status
pension savings It’s never been more important to plan whom you’d like to
06 M aintaining
dividend growth Rewarding investors in UK-listed companies
10 S mart investing Inside the minds of savers and investors
07 B est of British UK PLCs most widely held by investment companies
08 P ension earmarking orders
12 T en tips to make the most of pension freedoms Planning for retirement in the new pensions landscape
Divorcees may need to take action to protect benefits following pension reforms
We hope you enjoy reading our magazine. To discuss your financial planning requirements or to obtain further Information, please contact Fairstone on 0845 6050689 or email email@example.com.
Welcome to our latest issue, in which we look at how the new pension savings market offers much more flexibility and choice post–6 April this year, which is a positive, but it can be overwhelming. For people planning for retirement in the new world of pension freedoms, there are both risks and opportunities – from passing on your pension to loved ones, to making the most of tax relief. On page 12, we consider what your next pension freedoms steps could be. Investors in UK-listed companies will be rewarded with an £85.8 billion payout in 2015, significantly better than last year, where investors suffered little or no growth in income according to Capita Asset Services’ ‘Dividend Monitor’. Dividend payouts from UK-listed companies made a strong start to 2015, prompting analysts to hike their forecasts for the year. Read the full article on page 06. Now in its third edition, the latest BlackRock Investor Pulse survey takes an in-depth look at Britons’ attitude to money and provides a fascinating insight into the minds of savers and investors. People were asked about their priorities, concerns and how they invest. On page 10, we unveil some key findings and highlight the UK’s SMART investors. The full list of the articles featured in this issue appears opposite. We hope you enjoy this issue, full of topical articles around the new pension freedoms. To discuss any of the articles featured, please contact us.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance. Your home may be repossessed if you do not keep up repayments on your mortgage. The value of investments (including property) and the income derived from them may go down as well as up. Fairstone Financial Management Ltd is authorised and regulated by the Financial Conduct Authority.
Planning your retirement income Will the pension reforms have an effect on retirement planning? Just under a third (30%) of people
taxation issues, and 31% said it was down
believe the recent pension reforms will
to not knowing what decisions to make and
affect their plans for retirement income.
not fully understanding the changes. 11%
Responding to a Schroders survey, of the
admitted they didnâ€™t have a pension. n
people who said pension reforms will affect
Source data: Part of the Schroders Global Investment Trends Survey 2015, 1,000 UK investors surveyed (2 June 2015).  Respondents could give more than
retirement, a significant proportion (45%)
said they are likely to consider taking some money as cash and putting the balance in an investment fund.
Cash is king Another plan is to invest in an income fund, and 23% said they are looking to keep the money in cash. 29% are planning to put the money towards a luxury purchase, such as a dream holiday, and 28% said they would use the money to pay off their or their familyâ€™s debts . 
Understanding the changes The remaining 70% who did not think the reforms will affect their retirement income planning gave varied reasons for this. 20% said this was due to worrying about
Good financial planning Surprisingly, only 30% believe the new UK pension reforms will have an effect on their retirement planning. This seems to be due to wideranging confusion about the tax implications and the choices available to them. The investment possibilities for pre- and post-retirement are extensive, and itâ€™s important for people to understand what it means for them. Good financial planning and advice are essential. With the commencement of the pension reforms, now is the perfect time to discuss your requirements.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
Fairstone achieves chartered status We are delighted to announce that
34 financial advisory firms and now have
make sure that we can provide first-class
Fairstone Financial Management and
offices in Northern Ireland, Bristol and
service, advice and support to our clients,
Fairstone Financial Management (City)
London, as well as operating from our
and achieving chartered status will help us
have been awarded Corporate Chartered
headquarters in Newcastle, and we now
to do just that. n
Status by the Chartered Insurance Institute
have over 230 advisers acting for 30,000
(CII), the leading professional body for the
clients across the UK.
global financial services sector. The CII is the world’s leading
Chartered status is the “gold standard” of excellence for the financial services
professional organisation for insurance
sector. It brings with it a series of
and financial services. It has over
obligations to ensure that our financial
115,000 members who are committed
advice is consistently delivered to the
to maintaining the highest standards of
technical competence and ethical conduct. The achievement, which comes at a
As part of our chartered status we will commit to the professional development
time of rapid growth for us, represents a
of our advisers to help them attain the
key milestone for our business and makes
highest qualifications, and will also adhere
us one of the largest Chartered Financial
to the CII Code of Ethics.
Planning firms in the UK. Since 2011 we have brought on board
Achieving chartered status is incredibly important to our business. We want to
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Pensions Insurance Investments
FLIP-GTCOVPR 210 05.15 (47756)
Maintaining dividend growth Rewarding investors in UK-listed companies Investors in UK-listed companies will
Although a hung parliament had been
be rewarded with an £85.8 billion payout
a concern, it is always worth remembering
in 2015, significantly better than last year,
that the UK stock market derives almost
where investors suffered little or no growth
70% of its revenues from economies
in income according to Capita Asset
outside the UK, which makes the
Services’ ‘Dividend Monitor’. Dividend
investment universe highly diversified and
payouts from UK-listed companies made a
relatively immune to UK political change.
strong start to 2015, prompting analysts to hike their forecasts for the year.
Bearing on financial markets
Recovering UK economy
As a result of this election, two new
The reasons behind these dividend rises
political issues have risen to prominence
are the recovering UK economy, which is
– first, the successful integration of the
growing at its fastest pace since 2006, and
Scottish Nationalist Party (SNP) into the
the strength of the US dollar, which sees a
UK parliamentary system, and second,
number of FTSE 350 firms make payouts in
the longer-term impact relating to the EU
this currency. While UK companies are no
‘in-out’ referendum in 2017. The latter will
longer the sole source of dividends globally,
have a bearing on financial markets and
a well-blended portfolio of stocks from
the domestic economy in due course.
Dividends are right at the heart of what
Average price-earnings ratio
investing in equities is about, and since
Equity markets have had plenty of time
dividends are paid out of a company’s cash,
to prepare for higher US interest rates,
the payment of a dividend can confirm the
and the US dollar has strengthened partly
fundamental strength of a company.
in anticipation. However, the reality may still cause a shift in investor behaviour
UK equity fund outflows
and, if history is a guide, a fall of the
Prior to the Conservative Party’s victory in
average price-earnings ratio (the current
the general election on 7 May this year, the
share price of a company divided by the
fears of a hung parliament and an anti-
earnings per share for the last financial
business coalition government resulted in a
period). This has been gently rising for
sharp increase in UK equity fund outflows in
some years. n
the months preceding the election, and threw up some selective investment opportunities in the utility and support services industries.
Regardless of what stage of life you’re at, we can provide the advice required to help you grow your wealth and future income. To enable us to recommend the appropriate investment approach for you based on your personal preferences, and to explain how you can make the best use of our recommendations, please contact Fairstone on 0845 6050689 or email firstname.lastname@example.org for further information. Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to
the FTSE 350 can provide investors with a diversified, sustainable income for life.
Investment solutions to grow your wealth
change. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance.
Best of British UK PLCs most widely held by investment companies Which UK companies have investment
in anticipation of potential buying
the quality advice, comprehensive investment
company managers been favouring? With
solutions and ongoing service to help you
the UK in the spotlight, the Association of
Investment companies are one of the
Investment Companies (AIC) has published
best ways to spread investment risk across
details of which UK companies are held by the
a range of companies, but investors need to
highest number of investment companies in
take a long-term view and ensure they hold a
their top holdings.
Interesting exceptions The UK companies held by most investment
Securing your financial future
companies are dominated by FTSE 100
Creating and maintaining the right investment
companies, with dividends no doubt
strategy plays a vital role in securing your
being one of the key drivers. But there are
financial future. Whether you are looking to
some interesting exceptions: for example,
invest for income or growth, we can provide
achieve your financial goals. To discuss your requirements, please contact us. n Source data: Cash holdings data as at 31 March 2015. Source: Morningstar. Portfolio holdings as at latest available date. Prepared April 2015. Source: Morningstar. The Association of Investment Companies (AIC).
Provident Financial, the 13th most widely held top holding, is a FTSE 250 company, alongside Berendsen, the 16th most widely held top holding. Amlin, the 19th most widely held top holding, is also a FTSE 250 constituent. Senior, a FTSE 250 company, also makes the list and is held by 18 investment companies.
Top ten companies Dividend payers dominate the top ten companies held by UK investment companies, with banks, oil and gas, and pharmaceuticals prominent. Itâ€™s also interesting to see some fund managers increasing their cash exposure, possibly
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. It does not constitute investment advice or personal recommendation and is not an invitation or inducement to engage in investment activity. You should seek professional financial and, if appropriate, legal advice as to the suitability of any investment decision. The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance.
Number of investment companies holding these shares
Investment company with largest exposure (% portfolio)
1 HSBC 2 Royal Dutch Shell PLC 3 GlaxoSmithKline PLC =4 BP PLC =4 British American Tobacco PLC 5 AstraZeneca 6 Vodafone Group PLC =7 BHP Billiton =7 Legal & General =7 Unilever PLC 8 BT Group PLC 9 Imperial Tobacco 10 Centrica PLC =11 Rio Tinto PLC =11 BG Group =12 BAE Systems PLC =12 Barclays =12 Prudential 13 Provident Financial 14 Aviva =15 Rolls-Royce Holdings PLC =15 Standard Chartered =15 Compass Group PLC =16 Berendsen PLC =16 National Grid PLC =17 Sage Group =17 Friends Life Group Ltd =17 Reed Elsevier PLC =17 Lloyds Banking Group 18 Diageo PLC =19 Amlin PLC =19 Lloyds TSB =20 Pearson =20 Senior =20 Tesco
52 Temple Bar (9.47%) 44 Temple Bar (8.93%) 41 Temple Bar (7.14%) 40 Temple Bar (6.04%) 40 BlackRock Income & Growth (5.95%) 36 Manchester & London (7.22%) 35 Schroder Income Growth (4.30%) 33 Murray Income (3.72%) 33 Schroder Income Growth (4.21%) 33 Finsbury Growth & Income (9.04%) 31 Edinburgh Investment (5.38%) 30 Edinburgh Investment (5.70%) 29 Dunedin Income Growth (3.24%) 28 BlackRock Income & Growth (4.24%) 28 Manchester & London (5.37%) 27 Edinburgh Investment (4.9%) 27 Schroder UK Growth (4.74%) 27 British & American (6.54%) 26 Jupiter European Opportunities (9.09%) 25 City Merchants High Yield (2.64%) 24 Edinburgh Investment (2.67%) 24 Shires Income (3.79%) 24 BlackRock Income & Growth (2.78%) 23 Dunedin Smaller Companies (3.06%) 23 Invesco Income Growth (3.07%) 22 Finsbury Growth & Income (6.17%) 22 BlackRock Income & Growth (3.53%) 22 Finsbury Growth & Income (8.02%) 22 Fidelity Special Values (3.15%) 21 Finsbury Growth & Income (8.45%) 20 Independent Investment Trust (3.82%) 20 Invesco Perpetual Enhanced Inc (3.07%) 18 Finsbury Growth & Income (6.79%) 18 Lowland (3.98%) 18 Dunedin Income Growth (1.86%)
Pension earmarking orders Divorcees may need to take action to protect benefits following pension reforms An unintended consequence of the
ex-spouse transferring these benefits
It is important that these women act
pension reforms is that any divorcee
straight into a pension in their own name,
promptly (especially if their ex-husband
with a pension earmarking order may
creating a clean break.
is approaching retirement age) to check
need to act fast to protect their benefits.
their earmarked rights are protected.
Any earmarking order that provides the
New pension freedoms impact
They need to ensure that where they
ex-spouse with a fixed percentage of the
Pension sharing is the more popular
have a right to a percentage of the
pension income in retirement should be
method used today. However, before
retirement income, they receive the
checked to ensure benefits are protected
pension sharing was available, a number
same benefit if their ex-husband takes all
now that the member no longer needs to
of people would have set up pension
the pension money out as cash instead
take their pension as an income and can
earmarking orders. These people now
of as an income. n
instead take all the cash out as a lump sum.
need to check how the new pension freedoms impact them.
Second biggest asset biggest asset people have outside
Entire pension withdrawal as cash
their main family home. It is therefore
If a divorcee has a pension earmarking
unsurprising that they often form part of
order that pays them a fixed percentage
a divorce settlement. There are two main
of the pension income, they should
ways people can use their pension fund
check immediately to see if their rights
in a divorce settlement. They are:
are protected if the member decides to
n Pension earmarking: this is where
withdraw their entire pension as cash and
Pension funds are often the second
Reforms could impact on some people Earmarking orders have not been the major choice since pension sharing orders became available in December 2000. However, it is possible that the reforms could impact on some people. Anyone with an earmarking order that is still in force should consider their position.
a fixed percentage of the memberâ€™s
not take a pension income. If the member
pension benefits are earmarked for
takes the entire pension as a cash lump
the ex-spouse, but the pension stays
sum, the ex-spouse may not receive their
Information is based on our current
with the member. Once the member
correct entitlement. If the wording on the
understanding of taxation legislation and
reaches retirement and starts taking
earmarking order does not protect them
regulations. Any levels and bases of, and
the pension benefits, the ex-spouse
from this, they should seek advice from a
reliefs from, taxation are subject
will also start to receive the benefits
solicitor or accredited pension specialist
earmarked for them. They will receive a
to ascertain whether they can make an
fixed percentage of either the pension
amendment to the order.
to change. A pension is a long-term investment. The fund value may fluctuate and can
income or the tax-free cash lump sum, or both. (In Scotland, earmarking only
Right to retirement income
go down. Your eventual income may
applies to the tax-free cash lump sum.)
A number of people may have set up
depend upon the size of the fund at
pension earmarking when it first became
retirement, future interest rates and
n Pension sharing: this is where a share of the cash equivalent transfer value of
possible around 20 years ago, and the
the memberâ€™s pension is allocated to
majority of these orders would have
the ex-spouse. This could result in the
been for the benefit of the ex-wife.
IN THE NEWS
Nation of savers Focusing on the long term for a more secure future The UK is becoming a nation of savers, while 23% said they would be inclined with three quarters (74%) of people
to save more if savings options were
saying they are currently saving, research
generally easy to understand.
from Scottish Widows has revealed.
Passing on your pension savings It’s never been more important to plan whom you’d like to inherit them Your pension is your life savings you’ve built
It has been a watershed year in the
up to give you the retirement you want. Since
savings landscape, and the study reflects
new pension rules came into effect from 6 April
savers is up to 74% from 63% in 2010, with
to some extent the effect that landmark
this year, pensions have become more flexible –
a steady year-on-year rise in the number
changes have had on people’s mindset,
including a cut in tax when a pension is passed on.
of long-term savers. The average amount
with greater flexibility on savings vehicles
people have in short- and long-term
including Individual Savings Accounts
Plan who inherits your pension
savings now stands at £32,407, compared
(ISA) and pensions, as well as reforms to
With more money able to be passed on, it’s never
to £30,175 last year, marking a 7% rise.
how savings can be passed on to provide
been more important to plan whom you’d like to
more incentives to put money away for
inherit it. What’s not always well known, however, is
the longer term. n
that your Will doesn’t usually control who inherits
The savings study found the number of
More secure future A ‘more secure future’ was the main
your pension. That final, crucial decision is down to
reason 40% of those saving for the long
your pension provider, who makes reference to who
term were putting money away, while emergencies or a ‘rainy day’ is the main
Plugging the knowledge gap
is named on your Beneficiary Nomination form. If you don’t have this in place, your pension savings may not go to the person, or people, you wanted them to.
saving impetus for more than a third of short-term savers (38%). The proportion of people not saving at all has been steadily declining since 2010, as more and more people begin to wake up to the importance of having a buffer in the bank. A growing awareness around the importance of preparing for the long term was particularly marked, with the
The increase in long-term savers suggests more people understand the need to prepare for their financial future. However, plugging the knowledge gap will help ensure that people can access the information they need to make the right choices. If you would like to review your current financial plans, please contact Fairstone on 0845 6050689 or email email@example.com for further information.
proportion of people choosing to focus
Life changes and your wishes All you need to do is request a Beneficiary Nomination form from your pension company. It’s vital, too, to keep your Beneficiary Nominations up to date, as life changes and your wishes may not be reflected in the form you completed ten years ago. It’s particularly important following major life events such as the birth of children or divorce. n
just on this type of saving jumping from 14% to 17% over a four-year period.
Source data: The survey was carried out online
Year-on-year improvement Despite a year-on-year improvement, the study highlighted that a significant proportion of the nation is still failing to build up a financial buffer, with one in
by YouGov, who interviewed a total of 5,144 adults between 31 October and 5 November 2014. The figures have been weighted and are representative of all UK adults (aged 18+).
four (26%) not saving anything at the moment, and 18% having no savings at all. A third of respondents (33%) were aware that they were definitely not saving enough to meet their long-term needs, and 32% admitted they hadn’t saved anything at all
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Controlling who inherits your pension If you want more control over who inherits your pension, don’t delay in completing your Beneficiary Nomination. It is now possible to pass your pension pot on from generation to generation, just like other assets, but it’s essential to obtain professional advice. If you require more information, please contact Fairstone on 0845 6050689 or email firstname.lastname@example.org. Information is based on our current understanding of taxation legislation and
over the past 12 months. The study revealed The value of investments and income
regulations. Any levels and bases of, and reliefs
among those aged 45-54, with 33% currently
from them may go down. You may not
from, taxation are subject to change.
not putting any cash aside for the future.
get back the original amount invested.
that failing to save was most common
A pension is a long-term investment. The
Barrier to saving or investing
Past performance is not a reliable
fund value may fluctuate and can go down.
indicator of future performance.
Your eventual income may depend upon the
The research highlighted that almost half
size of the fund at retirement, future interest
(42%) said not knowing how to go about
rates and tax legislation.
saving or investing was a barrier to saving,
Smart investing Inside the minds of savers and investors Now in its third edition, the latest BlackRock Investor Pulse survey takes an in-depth look at Britons’ attitude to money and provides a fascinating insight into the minds of savers and investors. People were asked about their priorities,
these debts off is higher priority than longer-
make retirement a priority and realise the
concerns and how they invest. Here, we
term saving and investing objectives.
importance of spreading money across
unveil some key findings and highlight the UK’s SMART investors. The British are proactive about managing their finances and setting long-term financial
While the British take financial planning
enable SMART investors to feel confident
Cash makes up 68% of the typical portfolio.
and in control of their financial future. n
People use income investing in many
goals. However, managing debt is a high
ways and at all stages of life. These income
priority, and confidence in being able to pay
investments include property and sharebased funds that make regular payouts, and
The British are proactive about managing their finances and setting long-term financial goals. However, managing debt is a high priority, and confidence in being able to pay these debts off is higher priority than longer-term saving and investing objectives.
assets. These are ‘healthy habits’ which
seriously, they are conservative investors.
there is a near-equal split between people
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
who reinvest the payouts to build wealth and those who spend the payouts. The British would like to have three quarters of their working income in
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend
retirement. However, pensions remain an
upon the size of the fund at retirement,
obscure topic for many, and 44% have not
future interest rates and tax legislation.
yet started to save for retirement. The research identified SMART investors – people who invest sensibly, access advice,
Planning and advice
The average investor wants 76% of their current income in retirement
The five key habits of a SMART investor
Make retirement a priority
Actively invest for income and growth
Recognise the need to spread their investments
45% say they are concerned about outliving their savings
Save and invest more
Take planning and financial advice seriously
People use income from investments in different ways
Cash makes up 68% of British people’s savings and investments. What are the reasons?
re-invest the income
49% take the income
I don’t know enough about investing
36% I am cautious with my money
I want to be flexible and keep my options open
39% Having cash makes me safe
Cash never loses its value
Top five financial priorities and confidence in achievement Priorities
Saving and investing for retirement
Paying off credit cards and other debts
Growing my wealth
Paying off the mortgage on my home
Confidence Source data: BlackRock Investor Pulse was conducted in association with Cicero Group in August 2014. A nationally representative sample of 27,500 people in 20 countries were surveyed. They were aged between 25 and 74 years old, and 2,000 were UK residents. The results of this survey are provided for information purposes only. The conclusions are intended to provide an indication of the current attitude of a sample of citizens in the UK to saving and investing and should not be relied upon for any other purposes.
Ten tips to make the most of pension freedoms Planning for retirement in the new pensions landscape The new pension savings market offers
4. Make sure your Beneficiary Nomination
9. Consider reviewing your retirement plans
much more flexibility and choice post–6
is up to date – the new changes mean it’s
in light of the new rules – to make sure
April this year, which is a positive, but
easier to pass on your pensions to loved ones.
you’re on track to meet your retirement
it can be overwhelming. For people
Your pension provider will normally look at
goals, it’s important to review your pension
planning for retirement in the new world of
your Beneficiary Nomination when deciding
savings and estimate the income they’re
pension freedoms, there are both risks and
whom to pay your savings to, and your Will
likely to generate in retirement. If there’s a
opportunities – from passing on your pension
usually isn’t relevant. Keep your Beneficiary
shortfall in your savings, the earlier you spot
to loved ones, to making the most of tax relief.
Nomination up to date by requesting a form
it, the easier it will be to fix.
from your pension company, or you might be
Pension freedoms – what are your next steps?
able to do this online.
1. Make sure you have a clear picture of
5. Talk to your family – with the new
have a choice of accessing cash, keeping your
what pensions you have – some people lose
flexible rules about inheritance to bear in
savings invested, drawing a flexible income,
track of old pensions from previous jobs,
mind, you may want to work through these
buying a fixed income or some combination of
especially after moving property. Use the
these. You’ll feel more confident making your
to access your savings in retirement – you’ll
final decision if you’ve spent time thinking
free government service to track down your money: www.gov.uk/find-lost-pension
10. Think ahead about how you might want
6. Check how your pension savings are
about what’s right for you in advance. n
invested – you might have selected the funds 2. If you have various pensions from former
years ago, and they may no longer reflect your
jobs, think about whether you want to ‘tidy
wishes today. Or perhaps you are in a ‘default’
up’ your pensions – there could be benefits
fund, one which was automatically selected for
in bringing them together and consolidating
you at the beginning. Either way, it’s prudent
them in one pot, so it’s easier to keep an eye on
to look and see if the funds suit you. If you’re
what they’re worth and how they’re invested.
not sure, obtain professional financial advice.
This might not be suitable for everyone, and professional advice should always be obtained.
7. Other savings – if you’re approaching retirement and have Individual Savings
3. Check if you are making the most of your
Accounts (ISA) or other savings, you may want
workplace pension – your employer might
to review these and consider moving your
match some of what you pay in. See if you
savings into your pension in order to make the
could afford a bit extra each month to give
most of tax relief. This won’t suit everyone but
yourself a better opportunity to build a larger
is worth considering.
pension pot. Remember that for every £80
Make the most of your retirement opportunities Regardless of the life stage you have arrived at, it is important to receive expert and professional financial advice on your pension plans and requirements. Whether you need to set up or review existing retirement planning strategies, we can advise you to help you make the most of your retirement opportunities. To find out more, please contact Fairstone on 0845 6050689 or email email@example.com.
Information is based on our current understanding of taxation legislation and
you pay in, and depending on your particular
8. Be aware of scams – the new flexibilities
situation, this normally gets topped up
also give more opportunities for scammers.
with £20 in tax relief, and more tax can be
So remember, if it sounds too good to be
reclaimed if you pay tax at a higher rate.
true, it probably is.
regulations. Any levels and bases of, and reliefs from, taxation are subject to change. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
Your home may be repossessed if you do not keep up repayments on your mortgage. The value of investments (including property) and the income derived from them may go down as well as up. Fairstone Financial Management Ltd is authorised and regulated by the Financial Conduct Authority. Magazine designed and published by Goldmine Media ©2015. www.goldminemedia.co.uk No part of this publication may be reproduced without the permission of the publishers.
Published on Jul 1, 2015
Published on Jul 1, 2015
Welcome to our latest issue, in which we look at how the new pension savings market offers much more flexibility and choice post-6th April....