The Pensions Bill announced in the Queen's Speech today will mean savers reaching pensionable age will have to plan their retirement far more carefully, according to the Institute of Financial Planning (IFP).
Steve Gazzard, chief executive of the IFP, said legislation for sweeping reforms of the pensions system is good news for retirement income levels, but warned on the need for proper planning to sustain a comfortable retirement.
"Having access to a sizeable amount of cash is an attractive prospect, but can also seem daunting when you consider all the options that are out there. Careful decisions need to be made in order to minimise the ever present risks of outliving one’s financial resources and the wealth destroying impact of inflation," he said.
"Living well in retirement won’t happen by chance or by selecting a few financial products and hoping for the best. You first have to establish a sensible plan which sets out your desired lifestyle and how best to fund it from your available financial resources.
"Accredited Financial Planning FirmsTM and CERTIFIED FINANCIAL PLANNERCM professionals are the best financial planning professionals in the UK today. These are real experts in retirement income planning who can be trusted to help to create and maintain a robust retirement income plan.
"Consumers who use the services of an individual CFP professional or a firm which has been accredited by the Institute of Financial Planning can expect a high quality planning service and objective advice.”
The Financial Planning service involves identifying a client’s goals, preferences, concerns, and current financial position, followed by a realistic cash flow analysis and assessment to determine how best to meet retirement income needs.
"Working collaboratively, accredited firms and CFP professionals will help consumers develop a plan that maximises the likelihood of a comfortable and stress free retirement," he said.
Accredited Firms have to successfully undergo the IFP's comprehensive and rigorous accreditation process which sets the highest standards in financial planning and provision of long-term financial planning advice, which is far higher than that required by regulations. CFP professionals have obtained the globally recognised qualification which is at level 6 in the UK, equivalent to a University degree.
Mr Gazzard said: "Having a comprehensive financial plan gives people the context and discipline to avoid worrying about the future of their retirement and enjoy their retirement today. Accredited Financial Planning Firms and CFP professionals know exactly how to make that a reality."
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