Whilst many people complain about their job from time to time, the thought of simply moving from a 40 hour week to a complete retirement is actually daunting for many. We often underestimate the benefits our jobs bring us – the daily interaction with colleagues and clients and the benefits of job satisfaction are often misunderstood. To work all our lives and simply stop at 5pm one Friday afternoon is a huge change, and it doesn’t suit everyone. Work-life balance is important but so is keeping your brain active and the benefits of the social interaction that work can bring.
The introduction of pension freedoms has been a huge benefit for the over 55s, allowing millions to draw income from their pensions flexibly. A pension can now offer the ability to take a more phased approach to retirement. This emerging trend is seeing more people gradually reduce their working hours and blending a balance of work and leisure time to maximize their income and the benefits they may receive.
The flexibility that pension freedoms gives means that older workers can tailor their retirement to their own individual requirements, giving rise to a new distinct and more ‘free’ stage of life in between work and retirement.
Earning an income later in life also provides workers with the opportunity to continue saving, which can mean higher retirement benefits in the future. The research highlights that a work–life balance has never been more important to those over 55. Pension freedoms have allowed them to throw off the shackles of a traditional retirement and follow a plan that suits their individual needs. While historically people benefitted from generous final salary pensions, one drawback of these was that they didn’t offer much flexibility to decide how and when to take benefits.
Pension freedoms have changed the way people think about retirement and are enabling the rise of a more flexible transition into retirement, including allowing people to choose to start accessing some retirement savings to support a reduced working pattern. Not all schemes will allow this flexibility though and it is hugely important to seek advice as to what options you have when it comes to accessing your own pension plans.
For many people, it's not clear where their money will come from when they no longer receive a salary and that can be stressful. But don't worry. With our help, you can create a plan of action you can take today to prepare for the life you want tomorrow.
For tailored retirement and pension advice, please get in touch with Bryce Niven on 0141 233 0700 or email firstname.lastname@example.org.Find out more about our Financial Planning services
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