Last week I told you about the need for a new car. No updates really apart from the colour being chosen. Silver, I hear. So, once I have spoken with The Loan Arranger, it’ll be “Hiyo, Silver away !!!” Get it?, Get it?.
So, after the trauma of having to spend money for a new car, I realised I should check out my pension situation.
Having been in the financial profession for over 40 years, being a qualified chartered accountant, and having had the audacity to have taken fees for advice thereon, you’d kind of think I’d understand the pension stuff. Well, you’d be wrong.
Should I take an annuity…? Should I use a draw-down approach…? Can I self-manage my pension fund..? Can I use a different investment strategy..?
Those were just the questions on the first day.
Here in Bermuda, we have a Pensions Act, which regulates how company pensions are structured, who is allowed to manage them (“me” not being a choice, cos I’m stupid it seems), how much money you get out, how much fees you have to pay for the privilege of someone else telling you that “past performance is no guarantee of future performance” (… I MUST pay for that ??), how much residual balance you will have when the bus hits you, whether you even get that residual balance … and so forth.
You get the idea.
I hope this doesn’t sound cheeky or smarty-pants, because this is a critical issue for Oldsters, but if I don’t get it, then I feel strongly for those who are not finance savvy. I apologise if I offend.
Do pensioners just simply take the brochures home, read them, not fully comprehend, then go back to the pension provider and say, ”so what do you suggest..?”
I sincerely hope not.
The variety and complexities of issues are life-impacting for you … and your family, when the bus comes. I can not, and will not, criticise the pension people. They are professionals and they have a job to do. However, the options available to pensioners can ONLY be measured against their personal circumstances. If that is not deeply understood by the pensioner, then I fear that the pension product they end up with may not meet their needs today, tomorrow and for the rest of their lives.
Please, please, please be careful and seek independent advice.
Watch this space
Lastly, check out our Transition to Retirement Series at Olderhood.com. It discusses a range of topics about the migration from a busy working life, to the thoughts, feelings and emotions experienced in retirement. This week’s title is “Sleep, Eat and Retire”. This week, Part 2, the “Eating Business” …. I hope you like it.
We appreciate your continuing support, comments and suggestions. Thank you.
Quote of the week :-
When it comes to going after what you love in life, don’t take no for an answer.
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