Planning for Retirement
All of us at one time or another have “buried our heads in the sand”. It’s human nature…
Retirement planning is probably one of them. As everyone will tell you the more you save into a pension and the earlier you start the better prepared you will be.
As we all know, this isn’t always practical or affordable.
Are you planning for retirement in the next 10 years? Take a look at what action could you take to give you the best opportunity for the retirement you desire.
Workplace pensions
If you are a member of a Workplace Pension, are you contributing the maximum you are allowed? Most employer schemes will match the contribution you make up to a certain limit.
For example, a local employer in York offers a 4% employee contribution is matched with a 10% employer contribution of salary.
Increasing your contribution to 8% is matched with 14% from the employer.
Your pension investments
Are you investing in the correct investment funds? Most people drift into the default fund particularly when joining workplace pensions. The fund can certainly be the correct fund for you, but it’s worth checking as it may not suit your attitude to risk, or be the best performing fund within the range available.
Pension pots
People tend to move jobs more frequently now and will end up with a number of Pension Pots. Some you may have lost details of, and others you may have put into a drawer when you receive the annual statements.
If you have mislaid the details it’s worth contacting the Pension Tracing Service.
Please also speak to us if you want to understand what you actually have available for retirement.
Understand your allowances
The maximum contribution you can claim tax relief on is £60,000 (23/24) although your limit could be lower.
Additionally, you may be able to use previous years unused allowances (subject to conditions).
If you find yourself in this position it is worth seeking Independent Financial Advice, and please feel free to contact us on 01904 623888 or email contactus@yorwealth.co.uk.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future. You should seek advice to understand your options at retirement.
Categories: Updates
