10th August 2023
Getting retirement ready
KEY STEPS TO ACHIEVING A COMFORTABLE RETIREMENT
A comfortable retirement is a common financial goal, and contributing to a pension is essential to achieving it. Although retirement may appear distant at the moment, there’s much to consider. Let us assist you in navigating this crucial life milestone.
By planning ahead and making smart decisions about your savings, you can ensure a stable and enjoyable retirement.
HERE ARE 10 STEPS TO HELP YOU GET PENSION RETIREMENT READY:
1. ASSESS YOUR CURRENT FINANCIAL SITUATION
Start by evaluating your current financial standing, including your income, expenses, assets and liabilities. Determine how much you can save for retirement without compromising your current lifestyle.
2. SET RETIREMENT GOALS
Think about the kind of lifestyle you want to have during retirement. Consider factors like travel, hobbies, healthcare and support for family members. Estimate the annual income you will need to maintain this lifestyle, taking inflation into account.
3. CALCULATE YOUR PENSION GAP
Compare your projected retirement income with your current savings and expected pension benefits. This will help you identify any potential shortfall in your retirement fund, known as the ‘pension gap’. Knowing this gap will give you a clear target to work towards.
4. CONTRIBUTE TO YOUR PENSION PLAN
Commit to regularly contributing to your pension plan. The earlier you start, the more time your investments have to grow, thanks to the power of compounding. Look into your employer’s pension scheme and take advantage of any matching contributions.
5. DIVERSIFY YOUR INVESTMENTS
Don’t rely solely on your pension plan for your retirement income. Diversify your investment portfolio with other assets like equities, bonds and property. This will help spread risk and provide the potential to increase your returns…
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A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age).
The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.
Your pension income could also be affected by the interest rates at the time you take your benefits.