Page 8 - NKF_KL issue 15_web
P. 8

If you are young and think

      that considering how you

          will manage financially

             when you retire is not

    relevant to you right now,

                                   think again

      Anyone over 55 will tell you how quickly maturity happens

          O         ne minute you’re dancing the night away with  of your age now, it is not unreasonable to assume that
                    not a care in the world, and in the blink of an
                                                               you may not be physically able to work up until the
                                                               date at which you are entitled to receive your State
                    eye you realise you’re assessing slippers for
                    their comfort, durability and value for money.  pension.  Kidney Life went to meet Ged Dixon, an
                    And for those approaching retirement age it
                                            has never been     experienced Chartered Financial Planner about some
                                                               of the financial considerations people of all ages with
                                             so important to   chronic medical conditions need to make.
                                              obtain good
                                               professional    One thing is for sure; pension’s legislation is a
                                                advice on      complex matter.  I have worked in financial services
                                                 how best to   for 27 years and there has been a fundamental
                                                 assess how    change to pensions in every one of those years.
                                                 to achieve a   Let’s be clear – pensions are essentially a good thing.
                                                 good return   They can provide an extremely tax efficient way to invest
                                                on your        some of your hard earned income.  Unfortunately, they
                                                pension pot.    have had a stigma attached to them due partly to the
                                                If you are a   previous mandatory requirement to purchase a so called
                                               kidney patient,   ‘Annuity’ at age 75.  This was a requirement to pass your
                                                 irrespective    pension fund to a Life Assurance Company who in turn
                                                               would pay you a secured income for the rest of your life.
                                                               This all sounds very good in theory but we soon asked
                                                               ‘what if I die early and didn’t receive the entire pension
                                                                  fund I have worked to build up?’ An Annuity may
                                                                  actually still be a good option for certain people;
                                                                   perhaps those who just want the reassurance that
                                                                   they will receive a ‘known’ income without taking
                                                                    any risk, for the remainder of their life.  These
                                                                    people may of course just be prepared to accept
                                                                    that they may not receive the total amount they
                                                                     had paid into their pension plan.

                                                                     The level of the Annuity payment calculation is
                                                                     based on the assessment of certain criteria –
                                                                     age and health being two of them.  The pension
                                                                     provider may even also take into consideration
                                                                     your post code and smoker status when

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