The current pandemic has resulted in many redundancy announcements and with a second lockdown it is inevitable that redundancies will continue next year.
This means many people have been left facing an unplanned early retirement.
Employers can offer their employees financial support by providing Workplace Financial Education. This is more important than ever to help employees fully understand their redundancy package.
At Four Wealth Management, we offer a series of online Workplace Financial Education seminars to help employees manage their finances better. We can help employees to understand their redundancy package and the impact of this on their financial situation and retirement.
Some employees may not think they can afford to retire earlier than they were planning to. Our seminars will educate them on pension rules and regulations to help them manage their pension savings more effectively. For example, employees may not realise that they can take 25% of their pension as a tax-free lump sum. This can be used to pay off debts such as loans and mortgages to reduce their monthly outgoings in retirement.
Our Financial Advisers will also emphasise the benefit of leaving your pension pot invested for as long as possible to hopefully grow in value while you use other sources of income for as long as you can. For example, you may have other taxable savings and investments that you can use first. Some employees choose to invest their redundancy pay into their pension in order to benefit from the government’s pension tax-relief.
Some employees are concerned about the impact that Coronavirus has had on their existing investments and are therefore worried about covering unexpected expenses that crop up during retirement such as a car break down.
Getting financial advice can help keep your retirement plans on track as your situation and spending changes to make sure that you are not taking too much income each month to prevent you from exhausting your pension savings too early.
At Four Wealth Management, our Workplace Financial Education seminars are run by an expert financial adviser. The information provided in the seminars are generalised and aim to help employees to manage their own finances. However, the information is not personalised or tailored to each employees’ circumstances.
If an employee does want personalised advice tailored to their individual situation, they can book a no-obligation financial review meeting with a financial adviser at Four Wealth Management by calling 0117 973 0500. The adviser can work out the most tax-efficient way to fund retirement and create a bespoke plan.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Four Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.