Retirement planning doesn’t stop as soon as you retire. You might have 25 years or more ahead of you. In that time, your needs can change and your financial plan need to change with them.

Retirement is a time to enjoy yourself. To do all the things you always wanted to. You’ll want to make sure you’re still maximising your retirement income, so it pays to keep an eye on investment and savings rates. And it’s time to put some firm plans in place to pass on your wealth.

If you bought an annuity with your pension fund, that’s fine – there are no more decisions to be taken there.

If you opted for income drawdown, you should keep your eye on the performance of your pension fund, and annuity rates, to make sure you’re still making the best choice.

If you are unsure of the plans you currently have please seek advice from an independent financial adviser or financial planner.

Savings and investments
Fixed term savings and investment bonds can be used to provide you with additional retirement income and therefore it is likely that you will receive income from a number of sources when you retire including state pension, personal and/or company pension.  Savings and an investment portfolio can help supplement your pension income.

Savings accounts generally work in one of two ways:

Fixed rate – interest paid at an agreed rate for a fixed term With a fixed rate savings account you’ll always know how much savings income you’ll receive and over what time period.

However, you’ll probably need to tie your money up for an agreed term to benefit from the fixed rates on offer at any given time.

Variable rate – the rate moves up and down With a variable rate account – usually an instant access account – your savings income may rise and fall as interest rates move.

Using savings accounts to boost your retirement fund
If you’re approaching retirement, or you’re in retirement but have enough money to live on, a savings account could still be right for you.

One advantage that savings accounts have over investment type plans is that they are very low risk. Sudden falls in stock market values will not affect your savings. If you’re nearing or in retirement, this sort of reassurance may be what you’re looking for.

Another thing to think about is:

Long term care insurance
Long term care insurance is designed to meet the costs of care. People are living longer. And as more of us reach older ages, it’s more likely that we suffer from the frailties that ageing brings. Many more people need help at home, in residential care homes and in community facilities.

In England and Wales, state funding for long term care is means tested. Broadly speaking, if your assets are valued at more than £23,250, you’ll be expected to meet your own long term care costs. The threshold is slightly different for Scotland and Wales.

If you have to pay for your own care this could have serious implications for your assets. If you own your own home, you may have to sell it to pay for your long term care costs.

Benefits of long term care cover
Long term care cover gives you the money you need to pay for your own care and means:

• Your assets are safe - you don’t need to sell your home or cash in other assets to pay for care
• You retain your independence - you don’t need to rely on your family to support you
• You have a wider choice - you may be able to select a private long term care home that suits you better in terms of location and facilities

Any further questions on retirement planning?

If you are in the millionaire asset group and require further information on retirement planning, please call us on: 01582 839280 or email us.