Find out how the Government’s pension proposals will affect you; when will you receive your state pension and how much will it be, public sector pensions reform, what does this mean for me. What options will I have?

This was due to happen by 2026 however there are proposals to bring this forward.

Clearly you will need to consider the impact of a delay in a valuable source of income if you have to wait 12 months for your state pension.

This means that you will need to ensure that your existing pension pot is performing well to fill this gap. It would be wise to arrange for a review of your pension if this hasn’t been done for several years.

You may also want to consider making additional contributions to fund for the income gap.

The need for a proper investment process for your pension fund is always vital and this delay makes the need for broad diversification across asset classes and geographic sectors to help you to grow your fund to plug the gap that has been created even more important.

Contact us to discuss how our investment process can help you.

This is clearly linked to the rise in state pension age. It will allow you to work for the extra 12 months till you receive your state pension.

Again, a review of your current private pensions should be done. You may find that with careful planning you can still retire at 65 as originally planned.

There are new transitional arrangements to allow you to defer buying an annuity until age 77.

This is temporary until a full review is completed that should see the need to buy an annuity being scrapped altogether.

This is already a complex area and the proposals will make it even more complex.

The need for advice is crucial. There are many things to consider such as state of health, dependants, other investment assets and inheritance tax liabilities to name a few.

We strongly recommend that you seek advice if you are considering delaying the purchase of an annuity beyond your retirement age.

From 6th April 2011 this will increase by a triple lock of the higher of earnings, prices or 2.5%.

However from 2012 the earnings index used will switch from RPI to CPI that historically has increased at a lower rate.

There will be a fundamental structural review of public sector pension provision.

One of the objectives is to deliver savings whilst protecting those on low incomes.

It would seem very likely therefore that if you are in the public sector your pension entitlement could be reduced.

It would be sensible therefore to have additional sources of income at retirement. This can be provided by vehicles such as a private pension, interest from savings including ISA’s and tax efficient withdrawals from investment bonds.

If you think you may be affected by this review get in touch with us and we can help you to mitigate any reductions in your public sector pension.

Everyone’s retirement plans will need to be revised for one reason or another.

It is sensible to seek advice to find the right plan for you and your family.

Simple Solutions can help you with this. We can review your existing arrangements, measure the gap that will be created by some or all of the above changes and then design a plan to help you to fill that gap.