THROUGHOUT our lives, we often do things without pausing – almost on auto-pilot – with no serious adverse consequences.

In pensions and retirement, there are many people who have conscientiously saved into a pension for years only to take the first pension income (annuity) they are offered from the company with whom they have saved.

Often they will not stop to consider an alternative option that may be available through an independent financial advisor (IFA).

The company the pensioner has saved with may have given them a good return, but it does not necessarily follow that they will be the company that can provide the best income.

If you are approaching retirement, this could make a huge difference to your future income.

An IFA will be able to shop around for the best provider and take into account your individual circumstances, including your health.

There are more than 1,500 health and lifestyle conditions that could qualify for an enhanced annuity (pension) and IFAs can provide a quote without any obligation to proceed. Another way of increasing retirement income that is worth considering is equity release.

Equity release helps property owners unlock the capital that is tied up in their main asset – usually their home – without their having to sell it.

It is not a “one size fits all” product but can offer extra funds/income whilst allowing people to continue living in their home in an area where they are happy and comfortable.

Reputable financial advisors will only advise on lenders who are members of Ship (Safe Home Income Plans) and anyone interested in equity release should ensure their lender is a member of this self-regulating body.

It was set up by lenders after the scandal created by earlier schemes, which left many elderly people in financial difficulties.

These schemes were banned in 1990. Ship-approved schemes have guarantees which ensure you can never lose your home.

Equity release or other financial issues can be discussed informally with qualified IFAs, like the team at BHP Financial, who work with firms that offer special terms resulting in big savings for clients.

􀁧 Geoff Coulson is an independent financial advisor with BHP Financial, part of BHP Law, based in Darlington. He can be contacted on 01325-466794.