As you approach retirement, it’s important to be aware of the cost of living and how much income you’ll need to feel financially secure. With the cost of living going up, people approaching retirement are finding their pension pots are not lining up with how much they’ll need in their later years.
An online pension calculator can help start you off by giving you an idea of how much you’ll need to live comfortably. Your adviser is ideally placed to help you look at your own situation, finances and future income needs and work out a suitable plan to help you get to these goals.
Examine your assets with the help from an adviser
Everyone’s situation is different, depending on how much you have in assets, savings, and investments. However, there are some key issues to bear in mind to help things along, including the issue of rising inflation, which increases the cost of living as years go by.
Volatility in financial markets also adds to the concerns for anyone approaching retirement when it comes to how their pensions are performing. With expert guidance from your financial adviser, you’ll be able to make the most of your money for many years to come.
How to boost your pension and make more of your money
Of course, the earlier you start putting money away, the more time you’ll have on your side to grow your pension pot. But it can be hard when you’re still juggling mortgage debt, family outgoings and the general cost of day-to-day living. Even if you’ve opted out of your workplace pension or are self-employed and don’t have one, it’s never too late to start your own personal pension.
We can take you through how a personal pension can benefit you and give you more control and flexibility around how much you put in, where your money is invested and how you can access it in retirement.
Keeping track of workplace pension plans (if you do have them) and thinking about consolidating them into one pot might be a good place to start planning towards the goal of making your retirement as financially worry-free as possible. It’s a complex area, which your adviser can handle for you. It’s also worth remembering that if you defer or delay your State Pension, it will go up by 1% every nine weeks. That means if you’re entitled to £179.60 a week and deferred your pension by a year, you would get an extra £10.42 a week.
Make the most of your pension allowance
Most people are able to pay up to £40,000 a year into your pension, tax free although some exemptions may apply. If you don’t use this annual allowance, you can ‘carry forward’ the previous three years’ worth of unused allowances providing you are still registered with the pension and have earned in the current tax year the amount you (or your employer) would like to contribute.
Our financial advisers can help you review your pensions and advise on how to make the most of your investments going forward into retirement.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.