Retirement is something most of us look forward to, particularly on a Monday morning.
However, those thoughts are often little more than a whimsical cocktail of not having to work and prolonged holidays. The reality could be rather different, particularly if your retirement date is some way off.
For a start it has increasingly become a gradual process, with part-time work often playing an important role. The latest data from the Office for National Statistics (ONS) show that 13.3% of men and 8.3% of women aged 65 and over are still in employment.
Ensuring you have enough to live on in retirement, however, isn’t straightforward. A report from the Pensions Policy Institute, published in June 2021, suggests that around a quarter of those approaching retirement are unlikely to receive a minimum income (defined as £206 a week for a single person and £318 for a couple). Around half will fail to receive a personally acceptable level of income. Not planning adequately for your later years could have a serious impact.
Retirement planning is complicated and has been made even more so by constant changes to the rules. Trying to stay up to date with the latest developments is difficult.
A good financial planner can not only help to take full advantage of the available tax breaks but also:
- Assess your financial priorities and choose suitable ways of saving for retirement.
- Integrate any auto-enrolment pension provision from your employer with your own private provision.
- Maximise pension contributions, using carry forward where appropriate.
- Advise whether salary sacrifice could increase the amount invested in your pension, at no extra cost to you or your employer.
- Consider the appropriateness of a SIPP, and the right investment strategy.
- Deal with pension arrangements from previous employments.
- Manage the move from saving to withdrawing from your pension.
- Keep you informed on how any new government legislation could affect your retirement planning
For more details see our guide to saving for retirement below:
You might also be interested in ways to optimise your pensions: