Smart MoneySecrets -what’s your retirement gameplan?

What’s your retirement game plan?

By Michael Duale, PrincipalofMD WealthManagement

After theintroduction of Pension Freedoms in2015, retirement choices fundamentallychanged. Restrictionsaroundaccess to defined contribution pensions were liftedandretirees gained moreflexibility. Youcan choose to stay invested, decide your own levelofincome,orevenwithdraw theentirepot.Purchasingan annuityisnow another choice, rather than anecessity. Greater freedomsalso bring greater responsibilitytoensure retirementsavingslast. Nobel LaureateWilliamSharpe describes turning your retirementsavings intoincomeas“thenastiest, hardest problem infinance.” Andit’snowonder,whenyou consider howmanyoptionsare nowavailable.The cliff-edgeidea ofstopping work at60 or 65 and‘beingretired’arefading intoobscurity. People todayare adopting aphased approach, transitioningfrom working and saving,andmoving towards leisureand spending over a periodof years. Thisisall done on theirterms, inlinewiththeirownlifeplans, rather than restricted by apension scheme,oranemployer. Ask yourself, what does retirementlook like? Howcan Imakeitareality?If you’re‘retired’already,is itasyou imagined?Being‘in retirement’is much more thansimply drawing anincome.You’ll need to think aboutanefficient home anduse foryourtax-freecash(considering howpoorsavings ratesare), create asustainable income thatwilllast yourlifetime,andmanageyour retirementcapital.Manypeople findthatthecountless choicesat retirementare overwhelming With no definitive retirement ageany more,and different pressures on supporting olderand younger generations, arethinkis needed on howtomakebestuse of your retirementsavings.This meansconsideringother assets andsourcesofincome alongside yourpension,soyou can adapt to your changing needs over time. This newfound flexibilityis notwithoutitsrisks. Accessing yourpension potcanpresent very differentissuescomparedwith building yourpension wealth. If youhavechosentoremain investedin retirement,therewill be challengesthat youwill need helpandadvice to navigate. For example,stock marketvolatility canpotentiallybringwithita sequenceof returnsriskand reversepoundcost averaging when drawinganincome,which isan addedlayer ofcomplexity when establishing aretirement income strategy. Areal problem in retirement isunderestimating howlongyour moneyneeds to last.The100-year lifeisfastbecoming normal,with more ofuslivingmuchlonger, more active livesthan ever before. Thevalueofadvicecomesfrom building astrongrelationship over time, to understandyou andyour family’s needs.Our expertisein understandingtheintricaciesof amodernretirementmeans you can worry less andfocus on the importantthingsinlife.

Thevalueofaninvestmentwith

St.James’sPlacewillbedirectly linked to theperformanceofthe funds youselect,andthe valuecan thereforegodownaswellasup. You maygetback lessthanyou invested.

Equities do notprovide thesecurity ofcapital whichischaracteristicof adepositwith abank or building society.

To contact Michaelcall 01379 415511orgo to www.md-wealthmanagement.co.uk

MD Wealth Management Ltd isan Appointed Representative of and representsonly St.James'sPlaceWealth Managementplc(whichisauthorised and regulated by the Financial Conduct Authority) forthepurposeofadvising solelyonthegroup's wealthmanagement productsandservices,more detailsof whicharesetoutonthegroup's website www.sjp.co.uk/products.The'St. James's PlacePartnership'and thetitles'Partner' and'PartnerPractice' aremarketing terms usedtodescribeSt.James'sPlace representatives