Since the new era of pension freedoms started back in 2015, this a question and situation many people have been faced with. Whatever you choose to do, think carefully and choose wisely. You should seek financial advice from an independent financial adviser in Dudley before making a choice if you are not sure of the effects that might result. You have two broad choices that you can make – cash-in or hold on to your savings.
If you qualify, you might be tempted to cash in your pension. That’s understandable, particularly if debts are a concern. But if you’re really keen to get your hands on the cash, even if it’s just because it feels good to have the cash now – you need to think carefully about the risks and your longer term needs.
Preserving your savings
Cash is not always king if you’re keeping it for the long term. Certainly in an era of low interest rates and returns on cash savings, inflation can wipe off the value. Without any improvement in interest rates, £30,000 could be devalued to just over £24,512 after 10 years, assuming you spend the small amount of interest you gain and the inflation rate is 2%. That’s why many people opt for investing in the stock market, when it comes to longer term savings. It gives you access to better potential growth.
If you are looking to take more control and responsibility for your retirement savings planning, it is definitely recommended that you speak to an independent financial adviser based in Dudley on your own personal situation and a good idea on what will deliver the best solution for you.
No matter your situation, we have a team of financial advisors in West Midlands that can provide you with the best possible pension advice.
By choosing TKV Financial Management you can begin to get you the best possible support for your requirements. From our professional pension review service and investment planning through to financial planning and investment advice, we can provide you with front to back support.
To discover more about our financial advisors in West Midlands, speak with us today.