Whether you’re planning to take off and travel the world or stay put and enjoy the home you’ve worked so hard to create, a fulfilling retirement takes careful planning.
You may be new to the working world and thinking long-term or approaching the end of your career and ready to relax more, either way it is important that you are financially prepared for when the day arrives.
Retirement should be a time when you enjoy life to the full. Structuring your pensions, savings and other financial assets correctly will help maximise your retirement income leaving you free to enjoy yourself.
Read through our essential retirement checklist to ensure you take every opportunity to increase your reserves and retire on your terms.
Checklist for Retirement:
-
Plan for Retirement Early
You are never too young to start retirement planning. It may seem like a long way off, but start saving now, even if it is only a small amount
-
Create a pension strategy
An effective pension strategy, tailored to your individual circumstances, will ensure you enjoy the retirement you want and deserve
-
Join your company pension scheme
They are usually good value, your employer will contribute to your pension pot and your contributions will come out of your salary, which means you won’t miss the money
-
Look to Lower-Risk Investments
If you have a personal, stakeholder or workplace ‘defined contribution’ pension, then some, if not all, of your money is likely to be invested in funds. As you approach retirement, it might be wise to gradually move your money to lower-risk investment. Some pension funds automatically do this for you, but others don’t so make sure you check
-
Have a Flexible Retirement Plan
Pensions are complex in terms of tax relief and accessing funds, but informed choices will ensure you avoid costly mistakes. If things change as you reach different life stages, your retirement plans need to be adaptable and flexible to change with you
-
Do the sums
Work out exactly how much money you will have to live on in retirement. This is probably easier the nearer you are to retiring as you will be able to get accurate statements for your State Pension and any company or private pension providers
-
Explore Boosting your Pension Pot
If you’re getting close to the point of retiring and the amount you’re likely to have is less than you hoped or anticipated, the scope for making major changes to boost your pension pot is limited. But there are still things you can do to maximise your reserves. Explore all the options
-
Get Financial Advice
You might have money or savings that could be better invested for your future. Consider taking independent financial advice to find out more
-
Clear your Debts before Retirement
Aim to clear your debts before you retire. Many people use their pension tax-free cash lump sum to pay off their mortgage or loans. However, taking a lump-sum can be expensive compared to the amount of income you might have otherwise received if you had left the money invested in your pension. In this case, it might be wiser to repay debts out of your higher pension income
-
Keep Sight on your Objectives
When retirement planning, it is important not to lose sight of your objectives and to regularly revisit and assess the strategy you have in place to ensure it continues to meet your needs
You work hard throughout life to provide for family and loved ones. Retirement should be a time when the focus is on you and how you want to live life to the full.
This checklist is for general information only and is not intended to be individual advice.
If you would like independent financial advice about your plans for the future, get in touch with Chase de Vere by calling 0345 300 6256 or alternatively, email client.services@chasedevere.co.uk.
The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.