Start planning for the future you want
We don’t know what the future holds, but a little preparation goes a long way when it comes to planning your retirement. The earlier you start saving, the longer your pensions pot will have to potentially grow in value. That leaves you free to focus on what matters, whether that’s hobbies, holidays or just some well-deserved rest and relaxation.
Pensions made simple
We know, planning for retirement isn’t everyone’s idea of fun. And in the past you may have found it all a bit confusing. We aim to keep things simple so here are the basics facts you should know about pensions.
What exactly is a pension?
It’s the money that you’ll live on once you stop working. It basically replaces the salary or wages that you earned before you retired.
What is a pension plan?
It’s a type of saving account, but one that gives you important tax breaks. You can use it to build up your money and give yourself an income after you stop working. A pension plan is a long-term arrangement, so you can’t dip into it before you retire.
Why do I need a pension plan?
When you stop working, your pay will come to an end but unfortunately, those bills will just keep coming. So unless you win the lottery or inherit a large sum of money, your pension will almost certainly be your main source of income after you retire.
How do I get started?
Contact us – it’s like a health check for your finances. We will help you to review your current finances, recommend possible solutions and make sure your money is working as hard as possible to provide you with the security you need, now and in the future
No one starts out knowing exactly what they’ll need for their retirement years. With so many different plans and options available we all need some help making the decision that’s right for us. But what questions should you ask?
As time goes on our pension requirements change. So, before you take out your pension, it’s a good idea to see what type of plan would suit you at your current age. We will be able to guide you towards the best plan for your age and your circumstances.
It’s one of the most common questions people ask – and the answer depends on your circumstances. Your current age, your salary, and your planned retirement age, along with other factors, will help determine how much you should save each month.
Your pension shouldn’t get in the way of you enjoying yourself, but it’s worth keeping in mind as you make life’s big choices. If you’re planning a long break or a big move, mention this to us. We’ll be able to help you keep your pension ticking over as you get on with your life.
Retirement brings a big change in lifestyle. Your commuting and electricity bills could fall significantly, but your health expenses may increase. You may eat out less often, but you may wish to travel more frequently. How you wish to spend your retirement years will inform how much you should put into your pension.
When you take out a pension your contributions are invested in different funds. You can choose to invest your contributions in less risky funds, with smaller potential returns, or higher risk funds, with greater potential returns. Your financial advisor can help you decide your risk profile, so you can balance potential returns against potential risk.
When you retire you may be eligible for certain benefits, such as a tax-free lump sum. The benefits available to you depend on the kind of pension you have taken out and the tax arrangements at the time of your retirement. We will be able to take you through the various options available.
What are the benefits of a pension?
There are choices you make in life that will have a huge impact on your future – getting an education, surrounding yourself with supportive people and picking a career. You can add starting a pension to the list. But before you start making choices, you need to know how a pension works.
Each payday, each year or as often as you like, you save some money into a retirement fund. Your fund is put away and invested. Its aim is to grow over time, so that when you finally decide to retire, you’ll have savings to live out your life with a good income – happily. That’s it. A pension is just a way of saving for the long term. But it’s different for two reasons: Tax and time
Tax: When you save money in a pension, you’ll probably get tax relief on it – so the real cost to you could be less than you might think. A lot less. You can save more, without it all coming out of your take-home pay.
Time: The returns you earn on your investment are reinvested over and over, for years. That’s why starting a pension early makes sense; small amounts saved when you’re young can become very large by the time you retire.
And it’s important. Because one day you will want to retire. And the state pension will likely be a fraction of your current income. You won’t be able to do the things you want to do during your retirement.
Although pensions might seem complicated, the basics are easy. And the most important thing of all is to get in touch with us who can help guide you through the process.