People approaching retirement will naturally be looking forward to reaping the benefits of years of hard work. Now, they’ll find they have more time to travel, pursue hobbies and see family.
This is why it is fundamentally important to plan your financial future carefully and effectively. Planning should start as early as your 40s or 50s as you determine how much you will need to support your goals – along with a strategy for achieving them.
It’s a good idea to firstly calculate your baseline retirement income, budgeting for property, family and lifestyle expenses. This will involve assessing your eventual pension income, both from the state and private providers, and other assets, including accumulated savings like ISAs.
Your journey towards retirement is significant too, whether involving a gradual, transitional slowing down at work or embracing an abrupt change in living circumstances. Are you comfortable with, or adverse to, taking financial risks? This will ultimately impact how you approach your pension pot, such as whether you buy an annuity or withdraw a lump sum and invest the rest.
Some older pension plans contain valuable in-built guarantees that could be lost if transferred away from your existing provider. You should get these thoroughly checked by a financial adviser before reaching any definitive decisions. Consider your tax liability too, and maximise any options for tax relief, which will depend on personal circumstances.
For further expert savings advice in Cheshire and Shropshire, contact us at Hartey Wealth Management today to talk to one of our team, ensuring you enter retirement with peace of mind.
