inflation | Ross Naylor

Should I take a lump sum from my pension? 4 reasons why you should think twice

It is common for those reaching age 55 to withdraw the maximum 25 per cent tax-free cash lump sum from their pension. Many do so in order to splurge on the holiday of a lifetime, make home improvements, pay off a mortgage or help out children or grandchildren. However, the question should be asked: would people be better off leaving that money invested and withdrawing their pension gradually over a longer period instead? Here are 4 instances where the answer…

A deeper look at inflation

With UK inflation at 5.5%*, quite simply, if you are saving for retirement your money is going to have to work harder to keep its value Let’s say you were planning to retire on savings of £500,000. If prices go up by 10% before you retire, you’ll need to save an additional £50,000 to have the same retirement you had planned for. This means that either you will have to save more or you will need to delay your retirement.

A New Year Financial Check-Up

The start of a New Year is always a good time to review one’s finances. In fact, with 2021 behind us and the pandemic still rumbling on, a financial check-up may be more important than ever this year. With that in mind, here are some ways to make sure that your financial situation is on the right track.

Expat retirement planning: Beware the silent assassin

Are you in danger of letting your expat retirement plans fall prey to a financial assassin? It is always prudent to have a reasonable amount of cash on deposit to cover emergencies and short term expenses. However, having too much of your portfolio in cash can lead to, at the least, a loss of purchasing power in retirement and at the worst, you running out of money in later life. Why? Due to inflation.