PENSIONS

Retirement Planning

Thoughtful financial planning for the retirement you want

Why do I require a pension?

When you retire, your essential expenses such as food and housing continue. To maintain your accustomed lifestyle, you’ll need a secure income for the rest of your life. Unless you can rely on a large inheritance or windfall, a pension remains the most reliable way to provide this.

A well-structured pension plan, reviewed regularly, can help you build a fund to provide a reasonable income in retirement. The sooner you start planning, the better. If you have already begun, it is wise to review your existing arrangements to ensure you are on track to meet your goals.

How much will I need for my retirement?

The answer depends entirely on your personal aspirations. Consider what you want to do and what your daily living costs will be for you (and your partner). With more free time, what new activities will you wish to pursue? Also, think about expenses that might vanish, such as mortgage repayments or costs related to raising children.

Once you have an estimated figure, it is wise to include a buffer for unforeseen events. This provides you with a target amount to plan for. Remember that pension income is typically taxable, so you will need to account for Income Tax when calculating your final figure.

I’ve got a pension pot; is it sufficient?

It is important to regularly review the benefits of your current pension arrangements to ensure they are on course to deliver the income you desire.

If you are part of an employer’s scheme, you can obtain a statement from your employer or the pension provider outlining your expected benefits. For a personal pension, the final value depends on your contributions, investment performance, and charges. As your fund increases over time, the effect of investment returns becomes more significant.

For larger funds, even a small percentage change in performance can amount to thousands of pounds, making ongoing fund management essential. We can review your benefits to determine whether they are likely to meet your goals and provide suitable recommendations.

Which type of pension is right for me?

There is no straightforward answer to this. The best choice varies depending on factors like your employment status (e.g., self-employed, employed, or a company director) and the benefits available through your employer’s scheme, if one is offered.