Getting started
Making sense of your retirement
When you're just starting out in your working life retirement can seem a long way away. But decisions you take today could have a big impact on your financial future.
It's never too early to start thinking about your retirement. The longer you've got to save, the more chance you have of enjoying a financially secure retirement.
And if it all seems a bit confusing at the moment, don't worry. We'll give you a few thoughts to point you in the right direction.
The state pension is not enough
At only £152.30 a week for a married couple in 2009/10, the basic state pension is unlikely to replace the income you earn from working. What would this mean for your lifestyle?
Your employer's pension might not be enough
If you're lucky enough to be a member of a pension scheme you will have something to look forward to. But don't just assume you'll be OK. Check out the benefits you're likely to receive. You can top them up with your own pension.
You'll want to enjoy your retirement
Maybe you already have some ideas about what you want to do. Chances are you'll need some money to turn these ideas into a lifestyle.
What are you going to do?
Setting your goals is the first step to making them happen. So where do you see yourself in retirement? Working part time, on the golf course, travelling the world?
It may be too early to know the answer today, but bear these thoughts in mind. It pays to think ahead about how you will afford the lifestyle you want.
How much money will you need?
Don’t assume you’ll not need much. You might have paid off your mortgage but how much of your income will that account for when you retire? Probably significantly less, proportionately, than it does today.
And if you have to give up your company car, you’ll have to replace it, and maintain it.
A sensible rule of thumb is to aim for a retirement income of around two thirds of your earnings when you retire.
Who else relies on you financially?
You may be the breadwinner. You may have children who need your financial support. How does this affect the amount of money you need?
Don’t forget inflation
Don’t base your target retirement income on your earnings today. In 20, 30 or even 40 years, that might seem insignificant.
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 a range of tax advantages which makes them ideal for retirement savings and they can offer a wide investment choice. Pensions are the cornerstone of a retirement strategy.
Investments
If you have lump sums to invest, they can play a central part in helping you to reach your retirement objectives.
Tax services
If you’re saving with a pension plan, you’ll want to make sure you’re claiming all the tax relief that’s available to you.
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.
Call today for an appointment with one of our financial planning advisers
0845 301 9945*
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*Minicom 0845 900 5961.
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Glossary
Still struggling with retirement planning jargon? Check out those tricky terms with our glossary.