10 Things to Consider when Retiring
Whether you are retired already or are planning on it, there are always some key things to think about before or during. Some of these points are probably geared more towards those planning for upcoming retirement but they are still valid for those who are currently retired and are looking to review their position.
Find out what you’ve got
It’s good to know what funds you have, when you can get them and how long you think they will last. This can either put your mind at rest or give you a goal to work towards.
Where do you want to live?
Do you want to stay in the UK or live somewhere sunnier when you retire? Do you want to move closer to your children or grandchildren, upsize or downsize? There are so many factors to consider, but a decision on this can be a starting point for working out what you will need financially.
When do you want to stop working?
This is one to be realistic about. While you may want to stop work at 40, it probably isn’t or wasn’t realistic at the time! Suddenly, you’ve hit the big 6-0 and you’re still working 9–5. By finding out what you have (see point 1) you can work out when is the right time for you to stop working, and then work hard to make that happen.
Work out the level of income you need (or want!)
Working out what you absolutely need to live on (e.g. mortgage, bills, etc.) is a good start, but it’s always nice to have that bit extra for life’s little luxuries, so make sure to factor that in. Remember, your expenditure is likely to reduce when you are retired if you are coming to the end of your mortgage or no longer have a long commute to work. And don’t forget your state pension!
Pay in as much as you can
Once you have worked out what you need and want from retirement financially, it may be that there is a shortfall. This is the time to fill the gap, and even paying in a small amount to your pension can make a difference – don’t forget you get tax relief at your marginal rate on what you put in (up to the lower of your net earnings or £40,000). Speak to your employer if you have one – if they are contributing to your pension they will normally put more in if you increase your contribution, so you get a double whammy to the pension pot.
Keep the family in mind
If you have a spouse make sure they are using their pension as well. Once you’ve used up your annual allowance, look at whether they can use theirs to help build your joint retirement fund. Make sure you update your “nomination of beneficiary” to name who you want to have your pension when you die; it makes it easier for everyone involved and means your pension goes to the people you want it to.
Keep on track
Your planning for retirement should start as early as possible and that message should be passed on to the rest of your family. You are never too young to have a pension. Make sure you track the progress of your pensions or retirement savings so you can increase them where necessary. It usually helps to have all of your pensions in one place, so if you have some you want to add to your current portfolio with us, then let us know.
Choose the right investments
If your portfolio investment is with us, we will do all of that for you so you don’t have to worry. For those of you who self-manage or have investments elsewhere, make sure you are investing in the best funds and that you focus not only on growing your fund but also on protecting it.
Take everything into account
It’s not just your pension that can be used in retirement, there are other investment vehicles that can be useful if they are suitable for you. Speak to us to see where else we can invest your funds.
Work out what’s important to you
What is important to you in retirement, be it security or flexibility, will affect your overall retirement plan and so it is good to be clear on this decision before agreeing to anything that you perhaps cannot reverse in the future.
Talk to Retirement Planning Specialist
Redwood Financial is one of the South’s leading Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of pension and financial wealth planning, we can advise on any situation.