This article is written by

George Critchley

Amber River True Bearing

Find out more about George and his Amber River True Bearing team

Amber River True Bearing

Retirement means different things to different people, but we all still want it to be a fulfilling time of life. After all, retirement is far more than simply using your pension to replace your salary when you finish work.

That’s why a good retirement plan is more than just saving towards a pension: you must consider other vital elements that will help ensure you enjoy a happy and stress-free retirement.

A retirement plan will ensure you enjoy a happy and stress-free retirement

Make sure your Will is still valid

Did you know that a previously valid Will can become invalid under certain circumstances, such as remarriage? Once a Will is invalid, it is as good as no Will at all, and as a result, you will be subject to the rules of intestacy.

Intestacy rules mean that the estate will be divided in a strict order, depending on which relatives you leave behind. You will have no control over this, and nor will your surviving loved ones.

In addition to this, your estate will enter long-drawn-out probate proceedings, causing additional stress and worry for those left behind at an already difficult time. 

Mitigate your inheritance tax

Without proper foresight and planning, your estate may be subject to heavy inheritance tax (IHT) penalties, leaving less in the pot for your family. By seeking good financial planning advice from a qualified professional, you can create an IHT plan that maximises your full Nil Rate Band. 

Intestacy rules mean that the estate will be divided in a strict order

Prevent sideways inheritance

You may not have heard of sideways inheritance, but if you’ve remarried since preparing your Will, it’s essential to recognise and include any children from a previous marriage in your succession plan.

Sideways inheritance can occur if you’ve had children and subsequently divorce or are widowed. Your children might reasonably expect to inherit some of the family estate in due course. However, if you remarry and fail to make provision for them, there’s a risk that all of your assets will go to your new spouse. This means the inheritance will completely bypass your children, who you may have intended to inherit a proportion of your estate. 

One solution to this problem is a Will Trust. By setting up a trust, you can help avoid sideways disinheritance. A Will Trust is a legal entity that allows someone to benefit from an asset without being the legal owner.

If you don’t leave clear instructions your money may not end up going where you want it to go

Retiring from your own business

If you own a business, your retirement plan needs to include the transitioning of your business’s management and ownership​. This process can be sensitive and daunting. If you’re one of the founders or senior leaders, it can be challenging to let go and pass on the mantle to someone else. It needs to be carefully managed with all parties concerned and should form part of your overall financial planning strategy.

With the help of an independent financial adviser who looks at your personal goals and those of your family and, if appropriate, your business, you can enjoy complete peace of mind for your retirement. And, when you die, you will be ensuring that your money goes to the people you intend it to go to.

Then, the only thing you need to worry about in retirement is relaxing and enjoying all of that free time you’ve been looking forward to.

Get in touch

To speak to one of our team, arrange an appointment or find out more, call 0800 915 0000, or alternatively use our contact form here.