Money Matters section sponsored by Abacus Financial Services Ltd

Will you be ready for retirement?

As a young adult, one of the last things people think about is planning for retirement. Having just started their careers, the thought of the end of their working life is a distant prospect. People reaching retirement age will say just how quickly the years pass by and how building a pension pot only gets harder as you acquire expenses you may not yet have. If you want to maintain a comfortable lifestyle beyond your working years, then saving early on is imperative.

There are different types of pension schemes, occupational schemes, which are set up by an employer, and private schemes that are set up personally. Nowadays, there is a lot more pressure placed on the individual to contribute to their pension especially if organised privately. The provider you choose and the way your money is invested could be the difference between maintaining your lifestyle at retirement and struggling to get by.

The amount you save into your pension and the way it is invested will also have a direct impact on the age at which you will be able to retire. No one wants to or is able to work forever and essentially the earlier you start to save for your retirement, the earlier you can retire! With improvements and developments in medical care, life expectancy is rising so if you do decide to retire early on, this could mean living off your pension for over 30 years.

Abacus have designed a pension plan that makes it easy for you to save for retirement, whatever your lifestyle and attitude to risk. It allows you to contribute as much as you want, from as little as £100 per month. The Prosperity Personal Pension Plan is a tax efficient, flexible and low cost retirement plan designed to help you build and grow your pension fund, with freedom of choice over your pension investments, so you can enjoy a comfortable retirement.

You decide when and how you contribute to your pension. This could be monthly, quarterly or even half-yearly and may be on a regular basis, a one off lump sum or a transfer inform your existing pension provider. If something happens to you that has an impact on your life financially, the Prosperity Pension Plan allows you to stop, restart and change the amount you wish to contribute to suit your financial circumstances.

You can select where your pension funds are invested from a wide range of approved investment choices, with the help of a financial adviser, or you can keep things simple by choosing one of our professionally managed model portfolios. These aim to offer capital growth and diversification across a wide spectrum of asset classes and a range of risk profiles.

Whether you have any experience in investing or not, our model portfolios allow you to select and participate in the investment strategy that is most in line with your risk profile and lifestyle needs. The Prosperity Plan offers four different options – Liquidity; Cautious; Balanced; Adventurous. Many savers prefer to take a higher risk approach in the early years, as they aim to make their pension contribution work as hard as possible for them and aim for potentially higher capital growth. However, as retirement age approaches, there is the option to choose our Lifestyle Switching Option that allows the choice of a pre-determined age where contributions are invested into a lower risk portfolio.

If you prefer a more personalised approach, Abacus offer a bespoke service that gives maximum flexibility and a wider investment choice. This strategy provides you whole of market access to investment options so you can tailor your investment selection to your specific needs and preferences. If you are an experienced investor then you may be able to manage your own investments. If you are not experienced, but still want a bespoke strategy, you can appoint an Independent Financial Adviser or a Discretionary Fund Manager to act on your behalf.

Starting your savings early can have a tremendous impact on your “pension pot” at retirement age. The difference between starting to save towards your pension at age 25 compared to 35 can be remarkable. We have used our pension calculator (Click here) to demonstrate this. Without accounting for inflation and assuming a saving of £200 per month and a retirement age of 55, the former will accumulate £66,426 and the latter £122,015! 10 years really does make a difference!

People say time is money. If you start saving towards your pension early time will be on your side. The hardest bit about saving is getting started, so contact us and take control of your future retirement lifestyle, today. The application process is simple and easy and our specialised team will be here to guide you through it.”

Click here for more information on Pensions with Abacus Financial Services

Written by Daniel Pitaluga

For more information or to arrange a meeting contact:

Tel: +350 200 78267 ext 530

Abacus Financial Services Limited

5-9 Main Street, Gibraltar