A Taste of the Future?

28 May 2020

By Gareth Williams, Independent Financial Adviser

As working from home becomes the new normal – at least until Lockdown restrictions are eased – this has given many of us a taste of what retirement potentially looks like.

Alright, it’s slightly different as opposed to Conference Calls, being cooped up in the spare room with a laptop, monitor and a temperamental printer,
the future will replace “work” with those DIY jobs that never seem to reach the top of the “to do” list.

And Fishing. Fishing and Golf. Fishing, Golf and Gardening. Fishing, Golf, well – you get the picture.

The restriction on movement has meant that we don’t go out shopping as much and eating out and takeaways are the stuff of legends, so you might have already
shown yourself that you can manage on a reduced income.

Some might be part of the Government Furlough scheme and have shown themselves to be able to get by on 80% of their pre-Coronavirus income.

I can imagine that “those of a certain age” will be thinking about making this a permanent change to their working life and taking on a new career: Retiree.

Notice I didn’t say “pensioner” – as this would imply that you are claiming your State Pension and will have reached 65, 66 or even 67!

No. To me a retiree is someone who has decided that they have enough income and capital to finance a 52 week a year holiday and have taken the plunge to
stop working.

Coming to that decision is no easy feat. It might mean having to repay your mortgage to reduce the monthly drain on your bank account, or any other loans
you might have.

It will mean that you will need to assess any Defined Benefit pensions and when you could access an income and tax-free lump sum.

Any pension “pots” will need to be reviewed to determine how much, and when; you could start to release money in such a way that you use every single tax
allowance going. (After all – you have paid tax throughout your working life so it would be nice to pay as little as possible in retirement.)

There will also be savings and investments that you have saved hard for over the past few years.

Some of this might be used to repay those loans mentioned above and some will be used to finance home improvements, a new car or holidays – don’t forget
those holidays!

As I said, it’s not an easy feat but help is at hand.

To determine how much you need against how much you have, and the potential for future growth, we can help make sense of your finances and guide you towards
a financially secure retirement by running a Cash Flow assessment to give you a plan of action for the future.

We can help you wade through your options and, where necessary, provide independent financial advice to make the most of your money in a manner that suits

Recent events have shown that the global financial markets respond to world events in a volatile manner, but if you are going to be retired for 30 years
plus, you are going to come across the occasional drop in values.

(We don’t say “investment values can go down as well as up” lightly – it happens, but it’s how this affects you on a personal, as well as a financial,
level that drives our advice as a personal recommendation is just that: personal.)

Whether you are looking to fully retire or just reduce your working week to give you a three-day weekend, for example, why not take advantage of a free
initial consultation to discuss this further. This can be provided over the telephone or via other platforms while the current lockdown is in place.

Can I still arrange a consultation while the Coronavirus is having such an impact on UK life?
Yes, you can. Our team are still open
for business and very happy to receive new enquiries. We are very keen to take advantage of the opportunities to connect that technology provides us
with and would be delighted to arrange a video call through, Zoom, Facetime, Skype or WhatsApp Video. We can offer you support, advice and in many
cases reassurance.

If you would like an informal consultation with no obligation or if there is anything else you would like to discuss then please get in touch with our
Independent Financial Services team on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This article is provided for information only and must not be considered as legal or financial advice. We always recommend that you seek independent advice before making any financial decisions.

The value of your investment can go down as well as up and you may get back less than the amount invested.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.