Retirement might seem like a million miles away but it soon catches up to us and the last thing you want when approaching that milestone its to have to worry about whether or not you’re adequately prepared for it. The state pension is constantly deflating and might not even exist in 20 or 30 years and even final salary pensions probably won’t give you the golden years you deserve.
Wealth management for your retirement is not a particularly exciting topic but considering that the goal here is to ensure you have more money to enjoy your life with when you finish working, you might want to pay attention for the next few minutes.
What Steps Should you Take if you’re Planning to Retire?
Even if you’re in your early 20s, it’s never too ate to start planning for your future. 40 years might seem like a long time, but even if you put away just £1,000 a year from when you were 24 to when you were 64, that would still only be £40,000, which (realistically) represents little more than a few nice holidays and maybe a new car. You deserve more, and the long road to a better retirement begins by asking yourself a couple of questions:-
- Have you been enrolled in a pension scheme at work automatically? If not, have you considered joining your company pension scheme (if it has one)?
- What are your outgoings and are you putting money away for your retirement privately?
- How much debt are you in? Because it’s always wise to clear your sate before starting to think about financially planning for your retirement.
The Retirement Planning Checklist
Whatever stage of your working life you’re currently at, with the word in an incredibly uncertain place right now, it’s the ideal time to ensure your retirement plan is secure. Here, we’ll run through a list of tips and ideas you might want to investigate further if you’re interested in your future happiness, however far ahead it might be:-
- If you‘re self-employed, look into some personal pensions plans or lifetime ISAs.
- Check your state pension age. Right now in the UK, the state pension age is set to reach 67 by 2028 so keep an eye on that, because it’s likely to keep rising in years to come.
- Consider putting a portion of your savings into high-growth investments.
- Use a pension calculator to get a rough estimate of how much you’ll have to play with. These can be found for free online and should give you a decent idea of what you’re currently predicted to end ups with.
- As long as you are aged over 55, you can start drawing from your pension, but that might not be a wise choice, particularly if you’re still earning.
- Never be afraid to put more into your pension than your employer requires.
- There are definite benefits to having a third-party managing your retirement nest-egg. Not only will they be solely dedicated to making the most out of your money but it’s one less thing for you to worry about.
- Never be afraid to ask for professional help!