“When you reach retirement age, you can take an element of your pension tax-free so again this is a major advantage, particularly if you have seen growth over your pension portfolio in the previous years.”
Depending on the client’s circumstances, it is also worth considering the Inheritance Tax advantages of investing in a pension as pension assets fall outside of an estate on death.
The direction the markets are travelling in - against the backdrop of the FCA thematic review into retirement income advice and the looming consumer duty - means that adviser-client conversations have become more focused around building an investment plan that helps to mitigate the increased cost of living (due to inflation) and increasing life expectancies.
Robson adds: “The importance of agreeing on a conservative, well-considered long-term plan and then maintaining the discipline of implementing it is key to being able to deal with bumps in the road in the future.”
Ima Jackson Obot is deputy features editor at FTAdviser
