Having a strong retirement plan can make a huge difference. Our team of investment and pension specialists can help.
When it comes to pensions and providing for our retirement, too many of us are doing too little, too late. Putting away even a small sum early on can make a big difference to the lifestyle you will enjoy when you retire.
The golden rule is not to rely on the State alone, as this will not necessarily provide enough income for you in retirement.
Saving towards your retirement
If you are employed you should be offered a pension scheme through your employer where you and your employer both pay into the scheme. If you are self-employed you will need to set up your own plans and its important to try and do this as early as possible.
Whilst saving for retirement its important to have a plan in place. Think about the following:
- Do you know when you would ideally like to retire?
- How much will you need in retirement to pay for your living costs?
- How much have you saved already in previous pensions with different employers?
Getting ready for retirement
Years ago, getting ready for retirement was much more straight forward. Most people would take an annuity or pension which would give them a fixed income for the rest of their life. We now have many more options at retirement and benefits can be taken more flexibly. When you are close to retirement you need to think about:
- Exactly when do you want to retire? Sometimes it can be beneficial to do this at the start of a new tax year.
- Do you want to work part time initially?
- Do you want or need a lump sum from your pension?
- Do you want a fixed income for life or something more flexible?
Once retired it is important to continue to review the plans you have in place to make sure they continue to meet your needs, objectives and attitude to risk which can change with age.
Final Salary Pension Schemes
In very limited circumstances it may be beneficial to change your final salary pension scheme. However these schemes include a lot of very valuable benefits and it is important to get advice before making any changes to make sure they are suitable to your individual circumstances. When getting advice make sure:
- The adviser is based in the UK and ideally Chartered
- Is registered with the FCA
- They are authorised to give advice on pensions and hold the advanced qualifications necessary to do so
- Do not speak to cold callers
- Beware of investments offering ‘guaranteed returns’.
We do not offer advice on the transfer of benefits held in Final Salary Pension schemes. If you are looking for advice in this area we would suggest visiting the PFS “Your money” website to search for an adviser.