Scott Herbert, Partner and IFA of South Manchester firm Clarke Nicklin Financial Planning, used Pure airwaves to explain the different options for savers in an interview with ‘Stockport Reports’ Simon Kelsey on Pure FM.
Pensions, saving options and interest rates have dominated headlines recently. Scott clarified topics such as changes in state pension, the lifetime allowance, workplace pensions (auto-enrolment) and the different ISAs available.
One of the key points highlighted is the need to continuously review your pension scheme and monitor the level of funding required to ensure you are comfortable in retirement.
When asked what you should be doing to make sure you get the pension you are expecting, Scott commented, “it’s prudent to ensure you are reviewing your pension schemes, know where the pension is invested, what level of funding they have at the moment, and what you can expect to receive later in life.”
“If you are an individual nearing retirement, assess the level of risk you have with your pension scheme, know where the money is invested and have some sort of expectation of the level of income these schemes will provide you with. Contact the pension provider either personally or through the workplace, contact any historic final salary schemes you may be in, and ideally speak to a qualified Independent Financial Advisor”.
The discussion on ISA’s, which is high on many people’s minds, focussed on the government introducing the Help To Buy ISA, with 250,000 of these already having been taken up, which provide a 25% government contribution when you use it to help buy your new home as a first time buyer, as well as the Lifetime ISA, which again is intended to encourage long term saving.
In addition, the workplace pension scheme roll out was outlined, where employees and employers initially contribute a modest 2% of earning, which increases to 8/9% by 2018.
All of these measures provide a plethora of options to individuals. Scott recommends that the best way of investing is by using a combination of plans suited specifically around your risk profile, which are bespoke to you and your requirements.
Scott advises many high net worth individuals and companies ranging from SMEs up to nationwide and stock market listed companies operating globally. He has worked in the financial services sector for over 25 years gaining a wealth of knowledge within banks, insurance firms and large financial advisory companies.