Getting ready for retirement doesn’t start in the final weeks or months before 65, it can, and should start much earlier. Small changes early on can make a big difference when you really need it.
You will need to plan what income you want or need, and understand how much you would receive from the State Pension and any additional age related benefits.
Workplace Pensions, or Personal Pensions are a way to make sure you have additional money on top of your State Pension. For most Workplace or Personal Pensions the amount you receive will depend on the amount you’ve paid in (you could get valuable tax relief and employer contributions added to your own contributions) and how well the pension fund has grown. But how do you know how much you need to save to give you the income you want in retirement? Our planning will show you how much you need to save, and how best to do it to make the most of valuable tax reliefs and incentives.
We will also help you understand the relationship between risk and reward and guide you through the investment options that will help your funds grow whilst staying within your agreed risk tolerance.
You could also save in other tax efficient ways for example NISAs, which allow you invest with the benefit of having no tax to pay on the growth of your money. There would also be no tax to pay if you use it as a source of regular income when you need to use it too.
Once you do need to access your retirement income you will need to understand which parts could be taxed and how flexibly your money could be accessed. There are a number of specific retirement products available such as Income Drawdown or Annuities, and it is important to choose the right one to suit your individual needs.
We can help guide you through the early planning stages and building your retirement wealth, all the way through to releasing it to give you the income you need in the most efficient way.