Hitchin Nub News is delighted to provide a platform for expert financial commentary through our innovative partnership with Lyndhurst Financial Management, who support our coverage of the local community by being our headline sponsor - click on the banner above for more.

Founded in 1992 operating from Harpenden and having acquired an office in Hitchin in 2015, the firm has supported the local community for many years.

They value the contribution their staff make to helping Hitchin, Harpenden and the surrounding areas such a thriving place to live and work.

So, read on for expert financial commentary from Lyndhurst financial advisor James Wyman.

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Phased Retirement

Giving up the 9-to-5 doesn't necessarily mean stopping work. But retirement planning has taken on an entirely new dimension as a result of the Covid pandemic outbreak with many big questions being asked.

When you picture yourself in your golden years, are you sitting on a beach, hitting the golf course, or still working behind a desk?

For many people of retirement age, continuing to work is an option they are considering.

Increasingly people are planning to stagger work or work flexibility.

This can really appeal to some individuals who have caring responsibilities or health issues, or who are thinking about retiring in the next few years.

Sudden transition from working five days a week

Several decades ago, working and retirement were binary terms, with little overlap.

People were either working (and under the age of 65) or had hit the age of 65 and were retired.

That's no longer true, however, as staggered retirement is becoming more popular and more common.

Few people benefit from the sudden transition from working five days a week to not working at all.

Retirement can often be an unsettling period and it's not surprising given that the most common path into retirement is to go 'cold turkey' and simply stop working.

More flexible retirement and working part-time

New research has highlighted the fact that fewer people are deciding against completely stopping working and are opting for a staggered and more flexible retirement and working part-time.

Nearly one in three (32%) pensioners in their 60s and 16% of over70s have left their pensions untouched.

And of those who haven't accessed their pension pot, nearly half (48%) of those in their 60s, and 24% of over-70s, say it is because they are still working.

With people living longer, and the added prospect of health care costs in later life, retirees increasingly understand the benefits of having a larger pension pot in later life. Pensions are required to last as long as possible.

Of those who haven't accessed their pension pot, half say it is because they are still working while more than a quarter of people in their 60s say it is because they want their pensions to last as long as possible.

Of course, retirees who haven't accessed their pension pot must have alternative sources of income.

When asked about their income, nearly half said they take an income from cash savings (47%), others rely on their spouse or partner's income (35%) or State Pension (22%) while 12% rely on income from property investments.

Offering people different financial and health benefits

This trend for staggered retirements offers many financial and health benefits.

It is often taken for granted but continued good health is one of the best financial assets people can have.

The benefits of working – such as remaining physically active and continued social interaction – can make a big difference to people's mental wellbeing and overall health in retirement.

People are increasingly making alternative choices about retirement to ensure that they do not run out of money, but it's also really important to make pension savings work past retirement age so as not to miss out on the ability to generate growth above inflation for when there is the requirement to start drawing a pension.

A pension is a long-term investment, the fund value may fluctuate and can go down. your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

Information is based on our current understanding of taxation legislation and regulations. any levels and bases of, and reliefs from, taxation are subject to change. the value of investments and income from them may go down. you may not get back the original amount invested.

Lyndhurst Financial Management Ltd is Authorised and Regulated by the Financial Conduct Authority

Source Data:

Research from LV survey of more than 1,000 adults aged over 50 with defined contributions

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