At Lyons Financial Services, we understand that retirement planning is a crucial element of your overall financial plan. We often encounter clients who are already on their retirement journey when we start working with them. Unfortunately, what we sometimes find leaves much to be desired.
Many people believe they are well-prepared for a comfortable retirement, but upon closer investigation, we discover a lack of proper planning. Instead, we see a collection of separate policies. These clients often have bits and pieces of pensions without a clear understanding of their cumulative value. More often than not, this fragmented approach falls short of their expectations.
While multiple policies can make sense in certain cases, such as when they align with a planned retirement strategy or specific investment approach, we also come across situations where individuals possess multiple policies with no cohesive strategy behind them. This typically happens when they forget about previously built-up benefits or seek advice from multiple sources, resulting in a fragmented pension portfolio.
That’s why it’s essential to seek solid advice on your retirement plans and assess whether your existing range of policies serves your best interests. While consolidation isn’t always necessary, we often find that streamlining your pensions makes sense.
So, why should you consider consolidating some of your pension policies together?
First and foremost, building a solid retirement plan starts with understanding your aspirations and objectives. By identifying your desired retirement lifestyle, we can help you establish financial goals and determine the necessary steps to achieve them. We consider how much you need to save, the best structures to use, and the optimal investment approach tailored to your unique circumstances.
Once we have a clear picture of your goals, we assess your existing policies to ensure they align with your needs. If retaining all of your pensions is the best course of action, that’s fantastic! However, if consolidation offers a more efficient approach, we’ll recommend it. Ultimately, it’s about having a plan that guides your decisions, rather than blindly accumulating scattered pension policies.
Consolidating pensions can also lead to a more structured investment approach. When we identify the best investment strategy to achieve your retirement goals, implementing and managing it within multiple policies can become complex and cumbersome. By consolidating, we create a more streamlined and agile investment approach that can be monitored and adjusted more effectively.
Additionally, consolidation can often result in cost savings. While this isn’t always the case, we conduct thorough due diligence on different potential pension plans to explore cost-effective options on your behalf. By considering factors such as higher entry investment allocations, lower recurring charges based on asset thresholds, and flat per policy/account charges, we aim to ensure you retain as much of your retirement savings as possible.
At Lyons Financial Services, our focus is on developing a clear retirement plan tailored to your specific goals. Whether that involves consolidating multiple pensions or maintaining existing policies, we guide you towards the most effective path. It’s time to take those scattered policies out of the drawer and let us build a structured retirement plan that aligns with your aspirations.