Planning Your Future Retirement

Have you planned your retirement?

It’s easy to put off planning for your retirement. Student debts, first mortgages and family costs are all large drains on your income and savings, making a pension plan low priority. However, the sooner you start planning for your inevitable retirement, the better placed you will be later on in life.

The future is becoming a lot less certain in terms of government pensions, so why rely on this when you can set up the future in your own way and on your own terms? Currently, the state pension stands at approximately ÂŁ116 per week. That’s around ÂŁ6,000 per year, which is a scary thought.

This isn’t just about knowing you’re going to be able to survive; it’s about maintaining a lifestyle to which you’ve become accustomed. Retirement should be enjoyable and relaxing. It’s not the time to start fretting about money and wondering how you’re going to put food on the table.

Clear debts

University debts continue to grow beyond the average wage-earner’s ability to pay them off. Additional loans and costs can make starting out in life a financial challenge. Making sure you’re on top of your debts should be a priority when planning for your retirement; you’re going to struggle to save towards your pension if you don’t begin clearing your existing debts now.

We understand that it is easier said than done to clear your debts. At Expert Wealth Management we will help you to create a comprehensive payment plan, taking into account your earnings, outgoings and financial responsibilities in order to design a plan tailored to you.

Save what you can

Getting into the habit of putting some money aside is beneficial, even if you’re still in debt and don’t have a lot of disposable income. ISAs are are an excellent place to protect your savings. All major banks and building societies offer their version of this tax-free savings account, making it easier than ever to open an account of your own and begin saving.

Some people find it difficult to save as they try to put away too much. Find a realistic figure suitable to your needs and lifestyle and you’ll soon see the benefits. It’s also great peace of mind.

Company or personal pension scheme

New UK legislature stipulates that you are automatically enrolled into a pension scheme when starting new employment. Each payday, a percentage of your wage is put into the scheme. It’s possible to contact the pension company and ask to increase this amount if you feel you can. In most cases, your employer will also add money into the pension scheme. You will also receive a tax relief amount from the government.

It’s possible to open up a personal pension plan with companies such as Virgin Money, Aviva, and Clear Money, in addition to this. You pay in as little as £1 per month and receive a tax relief of 25%. It’s also possible to transfer in most other existing pensions. Your money is then invested into the stock market. What you receive at the end will be subject to your contributions and how well your investments have performed.

Seeking help from a financial advisor at this point is a great idea. Experts in this area will be able to provide you with the guidance and support you need to understand and make the most of your pension schemes.

Increase your contributions

Over time, steadily increase the amount of money you put into your pension plan. During the start and middle sections of your life, you may have mouths to feed and family financial commitments. When the children are grown up and have moved on, you may have some additional spare money each month. This is a great time to increase your contributions to pension plans and savings. You won’t miss it, and it will give you extra reassurance.

Revising your savings plan with your financial advisor as your circumstances change is a responsible and efficient way of ensuring your long-term strategy is performing to the best of its ability.

Life planning

The most important part of planning for your retirement is remembering why you’re saving. Keep yourself inspired. Sit down and plan out what age you would like to retire. Work out how much money per week you’re going to need to be comfortable and maintain your current lifestyle. This kind of aspirational life planning is a strong incentive to keep saving, and will ensure you can live the life that you have envisioned when you finally reached retirement age.

Retirement is a chance to relax, spend time with loved ones and do all of those things you never had time for before. Make it as comfortable as possible by being prepared financially.

To find out how retirement planning can benefit your future, or more information about the financial services we offer at Expert Wealth Management, get in touch today. Call 01993 772467 or contact us online.

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West Wing, The Old Dairy,
High Cogges Farm,
Witney, Oxfordshire,
OX29 6UN