Pension advice

The pensions landscape has changed but for most people, ensuring they have enough to live on in retirement  has remained a priority. As specialists in pensions savings advice, we’ve found that ‘how much do I need to save now to live comfortably in retirement?’ is the key consideration for many people. Establishing how much to save for the future, without going short in the present, isn’t always clear.

Everyone knows they ought to be saving for their retirement, and a workplace pension (through the auto-enrolment scheme) means that more people than ever are able to do this. But it’s still worth considering a private pension as well, if you don’t already have one. A simple stakeholder pension can be a good option as they can be opened by anyone in the UK (under 75 years) and allow flexible contributions, which can be useful if you’re not sure how much you can put aside each month. Saving over a long period of time helps maximise the benefits of compound interest and your pension contributions are eligible for tax relief, giving a further boost to any contributions.

If you’re currently working, and if you can afford it, it’s a good idea to put money aside in another savings account such as an ISA (a tax efficient savings vehicle) particularly if you have some years to go before retirement.

As you get closer to retirement it’s worth considering taking advice from a Chartered Financial Planner or Certified Financial Planner™ professional, preferably one with specific experience for later years and pension planning – because the decisions you make at this stage could affect your standard of living for the rest of your life.

Much as the opportunity to retire can be an attractive one, it also requires making decisions that will have a huge effect on the so-called golden years. Access to your funds at an earlier age (with associated tax liabilities) provides the option to take the money and run but for many this has created more confusion and indecision. Buying an annuity might still be the most appropriate route. Remember, your pension doesn’t automatically provide you with an income and you’re not obliged to buy from the provider you saved with.

Life coaches will tell you that the way to have a successful retirement is to have a plan. They’re thinking about what you might do with your time and ask you to consider what you might realistically expect to achieve whilst remaining happy. We will also tell you that you need a plan – because you need money to be able to live.

Retirement is one of the biggest changes we will experience and can be one of life’s positive milestones – this makes it even more important to keep on top of your financial planning and the earlier you start planning your retirement the better. Despite the rising retirement age, we won’t all be able to work forever.