You want your retirement to be fulfilling and rewarding – but you need to put some work in to Retirement Planning before you get there. Here are the main things you need to consider when planning for your retirement.
In recent years the UK has seen new legislation for pensions, enforcing employers to automatically offer enrolment in a Workplace Pension scheme for most of their employees. This is just one sign of an underlying problem that refuses to go away – people are simply not saving enough for their retirement.
If you want to take control of your own pensions and Retirement Planning, here are the things you need to consider now ahead of your retirement:
- How much will your lifestyle cost?
Your lifestyle in retirement will be different in many ways. On the one hand you will no longer have the expense of travelling to and from work, but you may well want to take longer holidays and eat out more often. Although it’s not simple, you do need to review every aspect of your future finances and be realistic about the level of lifestyle you hope to achieve. Remember also that you will hopefully be free of your mortgage and other long-term financial commitments.
- How much will your pensions provide?
If you have paid tax and National Insurance regularly you should be entitled to a full state pension. You may also have Workplace Pensions in place from schemes with your employers. It pays to keep track of the various different schemes and take advice on whether or not it is best to keep them separate. For each pension you have, you should receive a regular statement which includes a forecast of the level of income it might provide on your retitrement.
- What about savings and investments?
You may have other savings and investments which you need for a lump sum on retirement. This would allow you to pay for any large one-off expenses when you retire, such as a new car or a holiday, without dipping in to your pension pot. It pays to keep track of these, alongside your pensions, as part of your retirement planning.
- Keep track of your debts
As your income is likely to be lower in retirement, you will more than likely want to be free of any debts before you retire. Before you retire, you should review your debts regularly to ensure that you’re on track to pay them off and that you are not paying too much in interest.
Retirement planning is not a quick fix – you need to be thinking about it between now and your retirement and ensure that you have clear goals in place. If you need help with your Retirement Planning, call us on 01943 876631 or contact us through the website.