Planning for retirement

Making sure you remain on course

You’ve already made a start with your retirement plans. But it’s a good idea to take stock every now and then to make sure you’re still on course for a brighter future.

Circumstances change and plans need to be altered too. As your income grows and you begin to develop a clearer picture of what your financial needs in retirement are, it’s time to review.

You can carry out a review yourself. Alternatively, our financial advisers will be happy to review your plans with you.

Why do I need to review?

How your circumstances may have changed.

When you started your retirement plans they were probably based on your circumstances and aspirations at that time. Some things could have changed since then.

Your company pension
Maybe you were a member of a company scheme but you’ve changed employer. Does that leave you with a potential shortfall? On the other hand you may have joined a company scheme, so what are your options now?

Your contribution levels
Your contributions may have been realistic when you started your plans but are they still realistic? If your earnings increase you should try to increase your retirement contributions by the same rate. This way your retirement benefits stand a better chance of keeping up with inflation.

Your responsibilities
You may have a spouse, children or other dependants. They may also be relying on your retirement income. Is it sufficient for them and how can you go about protecting it? And if you’re now divorced, your accumulated pension fund may be shared with your former partner.

What should I review?

Some of the financial arrangements worth looking at.

Your State pension
The amount you receive depends on how much National Insurance Contributions you pay while you’re working. You might also be eligible for a State Second pension – linked to your earnings. You can get more information on your entitlement from Direct Gov.

Pensions from your current or previous employer
Do you have an up to date statement of the benefits you’re due under your employer’s plan? Or do you have information about any pension fund from a scheme you’ve been a member of? You can normally transfer benefits from other schemes to your own pension plan but always take advice before you do.

Your current personal or stakeholder pensions
How are those investments performing and are you still paying enough into them?.

Your other investments
Again, how are they performing and are you investing them tax efficiently in plans such as ISAs?

Your product options

Beyond a tax efficient pension plan, what’s right for you?

Pensions
You might have had a pension plan in force for a few years, but are you still paying enough? Make sure your pension contributions are keeping pace with increases in your earnings.

More on pensions

Investments
If you have surplus capital, inherited funds or if you’re paid a regular lump sum bonus you should try to make the most of the investment opportunities available.