Saving for your retirement can be one of the most daunting financial challenges you face.
When should you start saving? How much should you save?
If you’re retiring within the next 10 years, the questions will be more pressing: When can you stop working? Will you have enough to enjoy yourself? Will you have any left over to hand down to your family? How much will the tax man want?
The good news is that thanks to the changes the government made to pensions legislation in 2015, there is now more flexibility in the way you can access your pension benefits. For example, instead of buying an annuity with your personal pension when you retire – you could use your pot to provide a flexible retirement income.
This would allow you to take some of your pot (usually up to 25% of the fund value) tax-free, and keep the rest invested into funds from which you can draw a regular or ad hoc income.
This could mean you can now retire earlier, or go part-time as you prepare for retirement. But how do you know if you’re doing the right thing for your long-term future?
We want retirement to be something you look forward to
Everyone’s retirement objectives are different. Some people might want to buy a Harley Davidson and travel across America. Others might want to spend more time with family, write a novel, or start volunteering.
Whatever you plan to do will impact how much you save, when you retire and how much you need to live on, so it requires careful planning.
Our financial planners will help you to define what your long-held dreams for retirement are. Then they’ll maximise your financial arrangements so your money is on track to help you achieve your retirement goals. For example, showing you how to use your annual allowances in the most tax efficient way, paying extra contributions into your pension and making the most of other savings and investments.
They’ll show you how you might be able to retire early.
They’ll help you reduce the amount of money paid in Inheritance Tax when you die, enabling you to leave a legacy for your loved ones.
A comprehensive financial plan with all of your goals, objectives, and concerns can also help to give you the confidence that you can not only afford to retire – but also enjoy it the way you want to.
If you’d like to plan your retirement, please contact us.