Practical tips to plan your retirement

If you’re a saver looking for practical tips to plan your retirement, you’ll find plenty of advice available. Taking a holistic approach to their clients’ financial circumstances, wealth managers can be an excellent source of information for preparing for your future. Able to offer expert guidance on investments, portfolio management and estate planning, they can also help people plan for their future.

Retirement planning is an important part of ensuring you have enough income when you’re no longer working. It can also help you realise long-term goals and enjoy new pursuits that you previously didn’t have time for. Part of effective retirement planning also involves being able to ensure you can afford additional age-related expenses like care and medical needs, and that your loved ones are provided for when you’re gone.

In the next sections, we’ll examine some useful tips for people of all ages planning for their retirement.

How will the State Pension age impact your retirement?

The UK’s State Pension age is now changing. This may impact how early you’ll be able to claim the State Pension you’ll be awarded in retirement. This means that, in some cases, people may have to work longer.

Bearing this in mind, considered financial retirement planning is key to getting a measure of your future expenditure, income, personal pension funds, State Pension and any other pension schemes currently or previously provided by employers during your career.

How do employer pension schemes work?

Every UK-based employer with more than one member of staff is responsible for the automatic enrolment of all employees into a dedicated workplace pension. This is an ideal opportunity for you to boost your retirement funds, benefitting from both the government and your employer also putting money in. In situations where automatic enrolment to a pension is possible, employers must by law contribute a minimum of three per cent of an employee’s earnings. The minimum contribution made by a staff member and employer combined is eight per cent.

While opting out of these schemes is open to you, it may not be a smart move, as you not only lose the chance to make contributions towards your retirement, but also miss out on your employer and the government topping up your retirement savings.

What is a personal pension pot?

A personal pension is currently accessible when a person reaches 55 years of age. However, the UK government has now announced that the new minimum age when people can access their personal pension pots will increase in 2028 from 55 to 57.

It’s worth noting that accessing personal pensions at the minimum age is not always the best choice. Most people live much longer than they anticipate, and their personal pension savings must cover their needs until the end of their life. Many savers prefer to wait and access funds at a later date, as this also gives pension pots a chance to grow. Those looking to calculate their estimated life expectancy will find the Office for National Statistics has a helpful interactive tool.

You will receive a yearly pension statement issued by your pension provider. This should be checked regularly, as pension statements are a handy indicator of a pension pot’s value, a person’s specific retirement age and what they might expect to get at that age. Investment choices should also be reviewed regularly to ensure that they are still in line with your retirement goals.

Why is it important to define what retirement requirements?

To ensure you have enough funds available to achieve your personal aims for retirement, it is important to consider what your financial expenses will be after you no longer work. Start by asking yourself some questions.

Will you begin pursuing a new pastime or be travelling often? Will you need to continue paying rent or making monthly mortgage payments? If you are planning on still owning and using a car, will you buy a new one, and how much will it cost in maintenance and to run each year?

Working out what you will need in terms of expenses for your retired life can help you financially plan so you have adequate provisions to achieve your goals.

How will your health impact retirement?

When reviewing your retirement and pension options, it is also important to examine your present lifestyle and health, along with any age-related illness you suffer from. This can have a serious impact on any decision made about when retirement takes place and what necessities you could need to establish to maintain good health during retirement.

For this reason, you should check what your expected State Pension entitlement is and how these benefits can be maximised.

You must also decide when you’ll collect the State Pension you’re entitled to, along with any other benefits, and decide at what age you wish to retire at. You should also consider if you plan to keep on working, as this will generate additional income.

Are you searching for help with retirement planning in Chester or Shropshire?

At Hartey Wealth Management, we offer a wide range of services to our clients, including expert retirement planning.

Our retirement advisors can take care of your personal finances and ensure you stay on track towards the comfortable retirement you deserve. You can enjoy peace of mind knowing that you’re receiving the impartial and professional assistance you need to make the correct financial decisions. Effective retirement planning will also ensure you can appreciate more free time without worry, and you will have money to spend on what you want, whenever you want to.

Remember, it is never too early to start putting plans in place for your retirement. The sooner you start, the more wealth you can accumulate to ensure a more relaxed and prosperous period after you stop working. Our team of advisors is on hand to ensure your money works that little bit harder for you. For more practical tips to plan your retirement, and for expert advice, contact our dedicated team today.

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