A Quick Guide to Getting Retirement Ready
Retirement planning requires careful thought and financial preparation. As a chartered accountant, we understand the importance of securing your financial future, and are here to provide you with valuable insights and tips to help you prepare for a comfortable retirement.
Here’s some steps you can take:
Assess your Retirement Goals
Knowing what lifestyle you would like in retirement is key to setting retirement goals. Your preferences may change over time, so it’s crucial to assess your goals periodically. You should consider factors such as where you want to live, travel plans, and any hobbies or interests you wish to pursue.
Create a Retirement Budget
Estimating future expenses, including housing, healthcare, food, entertainment, and travel, will help you understand how much you need to save. Cash Flow Modelling, a tool we often use, is invaluable for creating a detailed budget tailored to your unique circumstances.
Maximise Contributions
The Annual Allowance, which represents the maximum amount of pension savings with tax relief, has recently increased to £60,000 for the 2023/24 tax year. To learn more about this, Chris Isaac of Pareto Financial Planners chris.isaac@paretofp.co.uk will be happy to take you through the details.
Explore Additional Saving Options
For those who have the means, consider contributing to personal or self-invested pension plans (SIPPs) to enhance your retirement savings. These schemes provide greater control and flexibility over your investments but be mindful of the pension contribution annual allowance.
Diversify Investments
Review your investment portfolio with a critical eye to ensure it is well-diversified. A balanced mix of stocks, bonds, and other assets can help manage risk and maximise returns. As retirement approaches, it’s essential to reduce risk in your investment strategy.
Ongoing Review and Adjustment
Remember that retirement planning is an ongoing process, so it’s crucial to periodically review and adjust your strategy as you approach retirement age. Starting early and being proactive in your 50s can significantly improve your financial well-being during retirement years.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless your plan has a protected pension age). Keep in mind that the value of your investments (and any income from them) can go down as well as up, which may impact the level of pension benefits available to you. Additionally, your pension income could be affected by the prevailing interest rates at the time you take your benefits.
For more detailed information or in-depth advice on retirement planning please contact Chris Isaac, chris.isaac@paretofp.co.uk our dedicated chartered financial planner.
Always remember:
Personal circumstances differ, and not all the information provided may be applicable to every individual or their business. This information is general in nature and should not be relied upon without seeking specific professional financial advice. It’s important to note that the Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, or will writing.
The content in this article is for your general information only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. While efforts have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
Please be aware that thresholds, percentage rates, and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor.
Langricks Wealth Management is a trading name of Pareto Financial Planning Ltd. Pareto Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority, registered in England and Wales No. 06582775. Registered Office: Tower 12 Level 7, Bridge Street, Manchester, England, M3 3BZ.
