PLANNING FOR YOUR LIFE AFTER WORK TO ENSURE A FINANCIALLY SECURE FUTURE

Retirement planning is an important step to ensure a financially secure future. when calculating how much you’ll need to live on in retirement, these are various factors to consider. Everyone’s circumstances are different.

While the general rule of thumb suggests aiming for around two-thirds of your final salary at retirement after taxes, it’s crucial to consider you requirements and desired lifestyle. Some individuals may need more or less depending on housing costs, healthcare expenses, travel plans and other lifestyle choices.

It’s essential to assess your situation and obtain professional financial advice to determine the appropriate amount to fud your desired retirement lifestyle.

HERE ARE FIVE KEY QUESTIONS TO ASK YOURSELF WHEN PLANNING FOR RETIREMENT

1. WHAT DOES MY IDEAL RETIREMENT LOOK LIKE?

Consider what you want to do in retirement and how you envision spending your time. Whether travelling, pursuing hobbies or spending time with loved ones, understanding your retirement goals will help you plan accordingly.

2. HOW MUCH WILL IT COST?

Evaluate your expected expenses in retirement by categorising them into essential and non-essential. Essentials include housing costs, utility bills, insurance and every day living expenses. Non-essential may include leisure activities, travel and entertainment.

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A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless 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 your take your benefits.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.