How Can a Financial Adviser Help You Make the Most of Your Pension?

KLOFinancial |

Without strong financial advice or strategic planning from your local pension adviser, minor withdrawals from your pension can have major adverse effects. There are many pension owners who do not have a financial adviser who can help you make smarter decisions for your pension especially if your pension is a SIPP (Self Invested Personal Pension)

Financial advisers can help with investment diversification

When making decisions about your SIPP, it’s important to take into account investment diversification to help you protect your portfolio in the event of a downturn. It is recommended to invest 50% of your SIPP into equity, 20% government bonds, 20% corporate bonds, 7% property and 3% cash. A financial adviser can guide you on how best to do this.

By adopting a wider diversification, your portfolio can absorb short-term setbacks. For example, by investing in un-correlated industries in multiple regions across the world will meet a wider investment diversification.

Understanding the Money Purchase Annual Allowance (MPAA)

This MPAA means that, if you’re over the age of 55, you can take upto 25% of your pension tax free. However, it’s important to ensure that you use this allowance wisely to avoid your pension running out of money in the future. The remainder of your pension will be taxable, therefore managing this balance is vital. If you manage to withdraw over 25% of your pension, this will servery impact your annual allowance from your pension.

A financial adviser can help you understand the MPAA and how best to use the 25% without incurring unnecessary tax liability. This will help you to maximise your savings and make the most of your retirement.

What next?

The most important thing is that you have a plan in place based on careful thought and that meets your needs and requirements. For expert financial advice on pensions and retirement, talk to our team.

We’re experienced local pension advisers with years of expertise under our belt – so you can be sure you’re in safe hands. Please call on 01926 492406 or email us at to make an appointment.