With your pension, it pays to take advice

July 19, 2019

Says Stuart Dodson, managing director of Newcastle Financial Advisers Ltd, part of Newcastle Building Society

According to the Office for National Statistics, a child born in the UK has a one in three chance of living to 100. That’s an increase of 28 years for a woman born in 1951 and 33 years for a man. These survival rates, amazingly, are projected to increase at an average of around ten years for each future generation.

While these advancements in life expectancy are to be celebrated, they pose a set of unique problems for us all. How do we best plan for extended life, post working age, for both ourselves and our families?

Without a doubt, a pension is one of the most critical provisions we can make for our future.

Employee auto-enrolment in pension schemes has raised the number of people saving for their retirement; however, it fails to equip consumers with the tools to make decisions at retirement. Freedoms introduced in 2015 brought more choice and options available than ever before to pension holders. This means making the right choice is more confusing for savers. According to research from the Association of British Insurers, a third of savers who accessed their pensions via drawdown for the first time between April and September 2018 didn’t seek financial advice before doing so.

For those with and without a pension pot, I’ve found one commonality throughout my 20 year-long career in financial advice: a general lack of understanding about the options available for later-life planning.

There’s a number of reasons for this: little or no financial planning education and awareness of the options available, regular changes in policy, limited trust in pension schemes, and limited accessibility to quality financial advice on the high street.

Most UK banks require customers to have a minimum investment of between £50,000 and £250,000 before they offer them face-to-face advice. These banks have drawn back the limited support they previously provided, choosing instead to invest in digital advice channels.

This is where we, Newcastle Financial Advisers Ltd, part of Newcastle Building Society, come in.

Over 16 years ago, the society created Newcastle Financial Advisers to offer trusted financial advice on pensions, investments, inheritance tax planning, and life and critical illness protection. Our approach is personal, approachable, and accessible. We’re here to support better financial futures, and we do that through jargon-busting, confidential and friendly advice offered over a cup of tea with professional in-house advisers.

The society has been a part of the North East for more than 150 years. In 2018 it donated six per cent of its profits to good causes throughout the region and is now halfway through an unprecedented investment in its 28-strong branch network. It’s of great pride to me that the society makes these investments at a time when I read so many headlines about communities losing their local bank branches, forcing them to travel further to find the support they need.

My advice to you? Whether you do or don’t have plans in place for later-life, take trusted financial advice. It’s my pleasure to welcome you to do so with us.

Newcastle Financial Advisers LTD
Newcastle Financial Advisers Ltd is part of Newcastle Building Society

Important information –

The value of your investments and any income from them can fall as well as rise and you may not get back the amount you originally invested.

Newcastle Building Society introduces to Newcastle Financial Advisers Limited for investments, pensions, life and protection insurance, and inheritance tax planning. Newcastle Financial Advisers Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

– Advertising feature –