Retirement Planning & Pensions
Gain clarity and control over your future
Planning For Your Retirement
Retirement is about more than just stopping work. It’s about having the freedom to live the life you want. But how do you know if you’re on track to achieve that?
We’re here to help you make sense of it all.
Are You on Track for Retirement?
As experts in retirement financial advice, these are three of the most common questions we get:
- When can I afford to retire?
- Will my money last through retirement?
- How much do I need to save?
How much you will need in retirement will largely depend on two factors – your needs and inflation.
Assess Your Needs
We all want different things from retirement, so the first thing we must look at are your specific needs.
- What do you want to do with your retirement?
- How will you spend your free hours?
- How much will you spend in your free hours?
At the least, you’ll probably want to maintain your current lifestyle. With the children raised, mortgages paid off, and pension contributions stopping once you retire, exactly how much you need will depend on what you do with your time.
A good rule of thumb is to aim for between half and two thirds of the income you receive in the years leading up to retirement, but if you have grand plans, you might need more.
Consider Inflation
Most banks target an inflation rate of 2%, which would mean prices double every 35 years.
Put into context, that means if you are 35 now, the price of goods and services when you retire will be at least twice what they are today.
Investing early will give you more time to reach your goals, which is why it’s never too early to start retirement planning.
Retirement & Pension Planning
Your retirement income is likely to be made up from three elements: your savings, your workplace pensions, and the State Pension.
Knowing how much you will have from each of these elements is challenging the further away you are from retirement, but you can get a rough idea.
The State Pension
How much State Pension you receive depends on how many years of National Insurance contributions you’ve made. 35 years’ of NI contributions will mean you qualify for the full amount (currently £11,400 a year). If you have paid NI contributions for less than 10 years, you won’t qualify for any State Pension.
The age when you can start to receive your State Pension is also rising, which may mean you receive this later than first planned.
Workplace Pensions
Workplace pensions could make a significant contribution to your retirement income. These pension schemes tend to fall under one of two categories:
Defined benefit – These pension schemes pay out an annual income based on your length of service and your salary at retirement. These are less common than they used to be.
Defined contribution – These pension schemes are commonplace nowadays. Current rules dictate that your employer has to pay at least 3% of your salary and you have to pay at least 5%.
Multiple Pension Pots
Many people change jobs multiple times throughout their career, leaving behind a trail of pension pots. Keeping track of them all can become a challenge, especially if you’ve moved house and lost touch with your providers.
Consolidating them into a single pension could make managing your retirement savings easier and give you more control over your investments.
However, not all pensions should be transferred. Some come with valuable benefits like bonuses, life cover, or guaranteed income, which could be lost if you transferred. Defined benefit pensions, in particular, are usually best left where they are. If you’re unsure, seeking expert advice can help you make the right choice.
Why use a Retirement Financial Adviser ?
With more flexibility and freedom than ever for how you manage your retirement income, getting the correct plan in place is vital. This is where a financial adviser can be hugely valuable.
There is a lot more to your retirement planning than just pensions. A good financial adviser will explore all possible avenues for you to generate retirement income and create a plan tailored for you.
Our retirement planning services are designed to give you clarity and control over your future. We help you:
Set clear retirement goals
Whether you want to retire early, travel the world, or simply enjoy peace of mind, we help you define what retirement looks like for you.
Maximise your pension contributions
We’ll guide you on how to make the most of your annual allowance and explain complex rules like the tapered annual allowance for high earners.
Understand your pension pots
If you’ve worked for multiple employers, we can help you track and consolidate your pensions, ensuring they perform as needed.
Review your investments
We regularly review your pension investments to ensure they’re aligned with your goals and risk tolerance.
Plan for tax efficiency
Our experts help you navigate pension tax rules, including using carry forward allowances and managing lifetime allowance limits.
Get Expert Retirement Financial Advice
We understand that no two people are the same. That’s why our retirement planning is tailored to your unique needs, goals, and lifestyle. We work closely with you to create a flexible plan that adapts as your circumstances change.
From planning in your working years to managing your income in retirement, we provide ongoing support and advice. Our regular reviews ensure your retirement plan stays on track, no matter what life brings.
Get in touch with one of our experienced advisers today. We’re here to help you navigate the complexities of retirement planning and give you the confidence to live the life you’ve always dreamed of.
Book Your Free Consultation Today
Take the first step towards a confident financial future. Contact us today to book your free initial consultation. We’re here to help you turn your retirement dreams into reality.
FAQs
What is the new 4% rule for retirement?
The “4% rule” for retirement suggests withdrawing 4% of your retirement savings in the first year of retirement and then increasing this by the rate of inflation each subsequent year.
What is the golden rule of retirement planning?
The golden rule of retirement planning is to start saving and investing early and consistently to maximize the potential for growth over the long term. Even small amounts add up over time.
What are the seven steps in planning your retirement?
The 7 steps to effectively plan for retirement are:
- Assess your current financial situation
- Determine your retirement goals
- Calculate your income needs
- Identify your income sources
- Plan your savings and investments
- Consider your risk tolerance
- Seek professional financial advice
Can a financial adviser help with retirement planning?
Yes! A retirement financial adviser can help put a plan together to meet your short, medium and long-term goals. Get in touch and let us take the hassle out of retirement planning.
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