DON’T EXPECT THE STATE PENSION TO COVER EVERYTHING

Another common blunder is assuming that the State Pension will suffice for your retirement needs. However, keep in mind that the State Pension will not be available until your late 60s and may not cover all of your expenses.

Pensioners eligible for the full new single-tier State Pension currently receive £185.15 per week in 2022/23, a total of £9,627.80 per year. However, keep in mind that what you receive is determined by your National Insurance record, so you may receive less. Pensioners who reached State Pension age before April 2016 and are receiving the basic State Pension receive £141.85 per week, or £7,376.20 per year.

DON’T LOSE TRACK OF YOUR PENSION PLANS

Keeping track of all your old pension plans has never been more important. If you changed jobs several times, moved frequently and did not update your pension providers, or opted out of SERPS (the State Earnings-Related Pension Scheme) in the 1980s or 1990s, you are most likely to have lost track of a pension.

Tomorrow we will look at 2 further simple rules to follow when planning your retirement, as well as the mistakes to avoid. Please contact us for more information on how we can help protect your future financial well-being and the options available to you.

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 YOU TAKE YOUR BENEFITS.