Retirement should be a time to enjoy all life has to offer—whether it’s cherishing moments with loved ones, finally going on that long-dreamed-of adventure, starting a new hobby, or simply savouring the time to relax and switch-off. The last thing you want on your mind is whether you’ve saved enough to live comfortably and make these dreams a reality.
If you’re wondering how to secure your financial future and enjoy a stress-free retirement, our guide has you covered. Keep reading for practical tips and strategies to help you save effectively and confidently plan for the retirement you deserve.
Increase contributions into your pension
Saving more into your pension now can significantly improve your financial outlook in the future. If you have a workplace pension or a personal pension, consider making extra contributions than your recommended minimum. Small increments add up over time, and the compound effect over several years typically means more income when you retire. An adviser will help you understand the impact small increases can have, and will take in to account wider considerations such as inflation.
Check your workplace pensions
You can find out about your workplace pension in the paperwork that you would have been provided when you started your job. If you’ve worked at several different places, you may have several different pots, so it’s worthwhile to review what you’ve got and where, and if there is a more effective solution. An adviser can help you consider whether transferring them all to one place is a beneficial move for example, and they’ll make sure you don’t lose any benefits as a result of doing so.
Open a private pension
Additional saving will help boost the amount you have for retirement. A self-invested personal pension (SIPP) is a way to do this and allows you to choose which provider and fund you invest in, rather than your employer deciding. The options that are suitable will vary from person-to-person, so it’s vital that you explore the risk and benefits with your adviser before marking any decisions.
Take advantage of tax relief
Contributions to a pension benefit from tax relief, ultimately giving your savings an immediate boost. Most people can contribute up to £40,000 per year (or 100% of their earnings if lower) while benefiting from tax relief. High earners or those who’ve accessed pension funds flexibly may have a lower annual allowance. You can also use unused allowances from the past three tax years to contribute more.
Alternative investments
If you’ve already maxed out your pension contributions, an ISA is a potential alternative saving solution. Although ISAs don’t offer tax relief on contributions, they provide greater flexibility in accessing funds. If you are planning on retiring soon, you should seek advice before making any big decisions around your investments as there may not be enough time to recover from any market downturns for example.
Consider delaying your retirement date
One way to potentially boost your retirement income is by postponing when you start withdrawing money from your pension. While this isn’t the right choice for everyone, it can offer several financial benefits, such as giving your money more time to grow. Before making any decisions, we will check with your pension provider to understand any fees or restrictions that might apply when changing your retirement date. We will also help you understand the cost impacts of different target retirement dates, so you can be confident that your goals and finances align.
Maximize your state pension
The State Pension is the income you receive from the state after you retire. The State Pension forms an essential part of many people’s retirement income, so ensuring you receive the maximum amount is important. Your financial adviser will work through each of the key steps to ensure you maximise your State Pension, and provide any key recommendations that may suit you personally based on your working history.
Next Steps: Plan your retirement with expert advice
Retirement is a time to embrace freedom and pursue the things that truly bring joy and fulfilment. By planning wisely and taking steps to ensure your financial security, you can focus on enjoying this well-deserved chapter of your life. Speaking with an independent financial adviser can help you evaluate your options and tailor a plan that fits your unique situation. Start planning today to make your retirement dreams a reality!
Call us on 0116 269 6311
Email us on hello@furnleyhouse.co.uk
Visit us at 340 Melton Road, Leicester, LE4 7SL
All investments involve a degree of risk of some kind. We advise you to seek independent professional advice before making any decisions. You can arrange a no-obligation discussion with one of our advisers to discuss further.
