The key challenge when making retirement planning decisions is to make sure you get the right income.
Guaranteed pension and bond products do not suit everyone. Those who want the maximum possible income at retirement should probably avoid them while those who have a high tolerance for risk should also steer clear.
However for many others, guaranteed products can have a role to play in helping to achieve retirement planning aims.
For example, there is often a case for guarantees for more cautious individuals who, without guarantees, are exposed directly to downturns in the stock market. When markets recover it makes sense to lock in gains along the way particularly if you are close to retiring and cannot afford sudden losses.
Guaranteed products ensure investors always get a minimum amount back while having the potential to lock-in returns on their investments. Guarantees can be used in conjunction with investments such as bonds or when saving for retirement and also once you have retired and want a secure income from your retirement savings.
As always you should seek independent advice on the suitability of this type of investment.
For expert independent financial advice from our team of advisors please visit us online. Operating in and around Berkshire and Surrey including Ascot, Bracknell, Sandhurst, Camberley, Wokingham, Reading and Guildford we can advise you on all aspects of your financial future including SIPP's, pensions, savings, investments, mortgages, tax and insurance.
