As with most things in life, just because something sounds like the best possible, fail-safe idea, it’s not guaranteed to work out as planned.
Take the My Pension Expert Clarence House Chase for example, the favourite, Jonbon, lost out to Elixir de Nutz in a nail-biting finish. This is of course not what anyone expected or, for some, wanted.
The same can be said about pensions planning. Just because one idea sounds perfect, doesn’t mean it will be perfect for you. Within the pension world, there are a variety of products available to you. The clear favourite on paper may not be the best when all is said and done.
Facing change
Much like the results on race-day, you can experience changes in your current situation which might impact your retirement plan. For example, you may face some unexpected expenditure, which could impact the level of income you need.
Changing levels of income can impact your personal circumstances. And this can result in changes in the level of risk you are comfortable with, or able to incorporate into your retirement plan. Consequently, you may need to rethink the risk level of your portfolio, and make a few adjustments. Of course, all investments carry risk, whatever their assigned risk level, so it would be sensible to speak to an adviser before making a final decision.
Sometimes, maintaining tunnel vision with your plans might not be the best idea. Remaining flexible and open minded to your various options will allow you to ensure you can remain on track with your objectives, even if other elements of your life change!
Know your options
At the racecourse, many like to ensure they study the entire race card to understand the various horses competing. Some just pick their favourite based on their names, but they don’t always do as well! The same can be said for your retirement options, it’s always best to conduct thorough research to understand which options are available.
Not all pension products work in the same way, and not all may suit the lifestyle you’re wanting to retire into. If the flexibility to choose exactly how much income you want to with draw, and when you want to withdraw it, a Drawdown might be the winning choice .
If you prefer a long-standing competitor, where you’re guaranteed an income regardless of any changes over a set amount of time, Annuities might be right for you. Of course, there are more options out there, but might not all be a winner for your individual circumstances.
Ask an expert
While we would love to, we can’t predict the future. But we can help you to secure your financial future – our advisers can help you to understand all the options available and help you to develop a personalised, tailored plan to suit your needs.
Independent Financial advisers, like our team at My Pension Expert, take into account your entire circumstances, the level of risk you’re willing to take and you dream for retirement. And remember, financial success is all about the journey. May your financial journey be as exhilarating and rewarding as a thrilling day at the races!