Don’t worry, be happy

A Financial Conduct Authority (FCA) retirement income study has pointed to some of the issues faced by individuals with pensions who are approaching retirement.

1. Take advice

As people approach retirement, it is crucial they take advice. The FCA has reported that non-advised people almost always remain with their existing pension provider instead of shopping around.

Obtaining professional financial advice will help secure the best value retirement income product to meet a retiree’s needs and help them understand a safe rate of withdrawal, balancing their income needs against life expectancy and the need to invest for income, which is very different to investing for growth.

2. Think twice before disinvesting your pension

Half of people are taking their pension savings out but not actually spending them. Instead, they are investing the proceeds into other products. This could be in cash, Individual Savings Accounts or buy-to-let properties. These actions will result in them giving up