MoneyMagpie

Dec 15

In your 60s and confused about retirement? Here are your first steps

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Are you in your 60s and still confused about your upcoming retirement options? You’re not alone!

With so many options – and lots of changes ahead for taxes and the economy – it’s hard to make a decision. Even financial advisers and pension companies feel unsure about what’s best for their clients right now!

So, you’re definitely not the only one worrying and confused about planning your retirement. The good news is that we’ve pulled together a ton of articles and advice in this guide.
We have an entire section dedicated to retirement and pensions – so let’s outline your baby steps here before you delve deep into the wide range of options ahead of you!

First step – Do Not Worry!

Seriously, you don’t need to worry.

It may all seem daunting but if you take it step by step you will get there.

Recent political shifts and the looming mountain of Brexit bring a lot of uncertainty to everyone when it comes to finances. Not knowing how to plan can make it seem overwhelming – but take a step back and have a breather.

Don’t ignore it, of course, but you really don’t need to worry about retirement and your money.

Here are some of the reasons:

  • The pension triple-lock gives some peace of mind
  • Pension rules changed in 2015 to give you greater freedom of choice
  • There is plenty of free advice available through Pension Wise, the Pensions Advisory Service, and the Money Advice Service.
  • Your pension provider(s) will help guide you through your options, so make sure you talk to them
  • The State Pension is your starter-for-ten: it’s a small – but guaranteed – income for your retirement
  • Jasmine and Moneymagpie are here to help! Post your questions in the comments below.

Second step – Take a deep breath

So, before you launch into doing something about the retirement situation, stop…

Don’t do anything quickly.

In particular, don’t be taken in by strangers calling you, emailing you, coming to your door or taking out ads in newspapers, websites or magazines telling you that they have a fabulous, sure-fire investment opportunity for your money.

These are VERY likely to be scam-artists. Anyone trying to pressure you into transferring your pension pot, taking your pension early, or offering too-good-to-be-true investment returns is highly suspicious.

1. Put the phone down.
2. Ignore the calls.
3. Just say ‘no’ to anyone who is not a bona fide financial adviser, whose advice you have to pay for.

You have time to make your own mind up so don’t let anyone lead you off-track.

If you’re not sure whether a pension provider is legitimate, you can always check to see if they’re registered with the Financial Conduct Authority. If you can’t see them listed, stay well away!

You can also report scammers to Action Fraud – whether they’ve attempted to scam you or you’ve been caught out and lost money through a scam. You can call them on 0300 123 2040 or file a report on their website. The information in your report is passed to the police, who will investigate if they think a crime (fraud) has taken place.

Third step – Get Help

You don’t have to do any of this on your own. If you’re in a couple, bouncing ideas off each other can help take some of the stress off – but we strongly recommend you still seek pensions and retirement financial planning advice together, too.

There is help around in the form of:

Pension Wise

A good starting point for an overview of your options. It’s run by the Government, so you know the information is up-to-date. Click here to go to the Pension Wise website.

Independent Financial Advisers

You will need to pay for one. We suggest opting for an independent adviser instead of a cheaper one linked to a big financial company. An independent adviser has whole-of-market access and isn’t limited to the options they can offer you. They also aren’t allowed to recommend things that aren’t in your best interests. It’s like to cost you around £500+ but it could save/make you THOUSANDS to get the right advice, so do pay the money.

MoneyMagpie!

We have tons of articles – and new ones always arriving – about pensions, money in retirement, and investing for your future. Sign up to our weekly newsletter for the latest info.

Your pension company (or companies)

Different companies offer different ‘solutions’ so it depends who you’re with as to what they will suggest. Their advice won’t necessarily be the best – and you certainly shouldn’t just grab an annuity off them if they press you to do so – but, like Pension Wise, it will be free and a good start at least.

The Money Advice Service

This is a great resource. They have lots of really helpful articles about pensions, investments, savings and more. Visit the Money Advice Service website here.

Fourth step – AgAin…Do Not Worry

If the points above made your stomach lurch (“what? Speak to my pensions company? Talk to Pension Wise? Pay for advice? Are you kidding?” you say) don’t let it get you down.

You don’t have to do it all at once. Take small steps and get everyone to write down the points you need so that you can digest them in your own time.

If you don’t know how to work things out because you:

  • Don’t know when you’re going to retire
  • Aren’t sure what you want to do in retirement
  • Can’t guess how long you’re going to live so you don’t know how long your money needs to stretch for

……you’re just like everyone else.

Seriously, no one really knows. Life has changed and pensions are changing so it’s all a brave new world for everyone (including the regulator, the Financial Conduct Authority!)

Don’t worry. We will work it out.

Take time away from retirement planning

If the stress of planning your retirement causes you anxiety or distress, reach out for help. We’re not just talking about financial advice, either!

Looking after yourself and your wellbeing is important. If you’re feeling overwhelmed, it’s easy to make rash decisions or be persuaded into a financial product or strategy that’s not really right for you – just so you feel like you’ve ‘done something’ to plan for retirement.

Take time away from your planning to enjoy yourself! Spend time with friends and family, join a local exercise or social group, and visit your favourite places. This’ll all help you bring things into perspective so that you can make sensible – and considered – decisions about your retirement future.

Fifth step – Keep Coming Back Here

So these are the first baby steps you need to take to find your way in the retirement maze.

We’ve got a bunch of articles about:

All designed to help you learn more about your financial options so you can make informed decisions about your retirement plans!

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WHAT DO YOU THINK?

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RODGER DU GOODJoanneJasmineRodgerharish kalyan Recent comment authors
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RODGER DU GOOD
Guest

Hi Jasmine
we are looking at updating our wills. I have noticed a company called April King advertising in the Daily Mail lately pointing people in the direction of Grandparent Wills. I have sent for their paperwork and i find some of it hard to believe, basically i don`t know which way to turn. They are making statement like leaving basic mirrored wills leave a lot to chance. Also there was an article in last weeks Financial
Mail advising people to take out Power of Attorney to cut down on problems later in life, please help!

Rodger

Joanne
Member
Joanne

Great advice for retirement.

Rodger
Guest
Rodger

We am thinking of taking out a Lasting Power of Attorney now that we are 60 years of age. I saw a quote in Money Mail this week for
1 Will, 1 Health & Welfare LPA. 1 Property & Financial Affairs LPA, £439 in vat per person, do you think this represents good value the offer is valid until the end of February.

Jasmine
Admin

Good question – in one sense it looks like very good value because often solicitors can charge that amount for each item you mention there. However, we don’t know how good the service would be for that price.

I will ask around and get back to you with views from a couple of experts in this area.

Jasmine
Admin

Hi Rodger I have asked Robert Jobson, Partner in the Inheritance Protection team at Gardner Leader solicitors, https://www.gardner-leader.co.uk/specialist/robert-jobson/ and this is what he says: “Before taking out a Lasting Power of Attorney and preparing wills, check that the provider is advising and not just selling. “Whoever you use, ensure that they can not only produce the documents, which is the straightforward part, but can also support with expert information, advice and understanding. Clients need to think about suitability of attorneys, powers they are delegating and that they trust their attorneys to make the right decisions for them generally. “On wills,… Read more »

Jasmine
Admin

Hi there Harish. I’ve spoken to Tom McPhail of Hargreaves Lansdown about this and his answer is: “…No. Pensions are non-transferrable. You could potentially use the new pension freedoms to cash it in and then reinvest the money more tax efficiently, however she’d still have to pay tax when she cashed it in, so there are no easy ways round this unless you can arrange for your wife to not have any income one year, cash the pension in, reinvest it either in an ISA or in your name and then restart her income again; all very messy. You can’t… Read more »

harish kalyan
Guest
harish kalyan

Hello,
my wife still works and i am retired. one of her pension policy matured few years ago and pays her approx £530 per year. obviously this is taxable. my question is can this policy be transferred to my name as to avoid the tax payable. currently i am not drawing any pension (from state or my private).

Many thanks

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