Getting started
Making sense of your retirement
Retirement can seem a long way off when you’re at the beginning of your career. But starting to plan for your future as early as possible gives you the best chance of a financially secure retirement.
Don’t leave it too late to start thinking about your retirement. The earlier you start, the longer you have to save. And once you’re in the habit of saving, you’ll feel happier about your financial future.
If you’re confused about where to start, don’t worry. We’ll help you with some ideas to help you build a picture of your future.
The state pension is not enough
The basic state pension is only £152.30 a week for a married couple in 2009/10. This is probably less than you’re earning today. Would you be able to survive financially on this amount?
Your company pension might not be enough
If you’re a member of a company pension scheme you will have some extra income when you retire. But how much will you receive, and will it be enough? If your company pension benefits are less than you need, you can top them up with your own pension.
You'll want to enjoy your retirement
You’ll have lots of time on your hands and you’ll want to do all the things you couldn’t when you were working – travelling the world, taking up a hobby. You’ll need money to make your retirement dreams come true.
What are you going to do?
It’s useful to set yourself some goals – then you can go about making them happen. Think about yourself in retirement. Will you work part time, spend time on the golf course or start your own business?
Chances are you’ll not have all the answers today, but bear these thoughts in mind. If you have a clear picture of the lifestyle you want, you can build a clearer picture of how you’ll afford it.
How much money will you need?
There’s always a danger you’ll underestimate how much you need. Your mortgage might be paid off but that will be a smaller proportion of your income when you retire. Most of us probably feel we could do with a little more money when we’re working. Will that change so much when you stop working.
Do you have a company car? When you retire, you might need to buy your own car, and maintain it as well.
A sensible rule of thumb is to aim for a retirement income of around two thirds of your earnings when you retire.
Do other people rely on you financially?
If you’re the breadwinner there will be other people, including your children, who need your financial support. Does this affect how much money you’ll need?
Don’t ignore inflation
Over the next 20, 30 or 40 years you can expect your income to rise and prices to rise as well. So don’t base your target retirement income on what you earn today.
Nothing is set in stone
Retirement planning does need some commitment. If your circumstances change in the future, so should your retirement plans.
Pensions
They have tax advantages that no other savings products offer. They’re ideal for retirement savings and can offer you a wide investment choice. Pensions are fundamental to most peoples’ retirement strategy.
Savings and investments
For regular savers and those with a lump sum to invest. You can use them to supplement your pension savings.
Tax services
Our tax service ensures you make the most of your pension tax reliefs and keeps your tax affairs in order.
Financial planning advice
Our financial planning advisers can help you understand the options open to you and build a retirement plan around your unique circumstances.
The cost of delay
Don’t put off planning for your retirement. The longer you wait the more expensive it becomes.
A to Z of retirement
Brush up on the meaning of some of the retirement jargon you’ll come across.
Get in touch
We’re here to help you cut through the complexities of retirement.
Contact us today for an appointment with one of our Financial Planning Managers.
Call us on
0800 051 1868*
*Minicom 0800 404 6161. Lines are open: Mon to Thurs 8am-8pm, Fri 8am-6pm,
Sat 9am-5pm (excl. public holidays).
Calls may be recorded
Glossary
Still struggling with retirement planning jargon? Check out those tricky terms with our glossary.