While the majority of people will be eligible to receive the state pension, it is important that this is not relied upon to be your sole source of income in retirement. Even at its fullest amount, the state pension and the new state pension will unlikely provide enough income for you to live a comfortable retirement. For this reason, it is imperative that you have a private pension to provide your retirement income and treat your state pension as a top up to your main pension.
How Much Pension? Three Factors To Consider
If you are thinking about your pension planning options you are likely to have many questions, seeking pension advice from an independent financial adviser, such as Montage in Essex, will help you answer these questions and devise a pension plan that is right for you and your needs.
One of the first questions you are likely to have will be how much you will need to contribute to your pension to ensure you have an adequate retirement income, this depends on:
- How much you can afford to save
- How many years you have to save for your pension
- The kind of retirement you want
As the average life expectancy continues to grow, pensions are having to provide an income for a longer period of time. It is worth considering your retirement could last 20-30 years, therefore you will require an income from your pension for that length of time too.
Questions To Ask When Planning for Retirement
When planning your pension, you will need to think about the type of retirement you want, for example do you plan to travel more, take up a hobby or spend more time socialising with friends and family. Understanding the type of retirement you want will help you implement an effective pension planning strategy to achieve the level of retirement income required to support your lifestyle.
It is also important to think about any commitments you are likely to have when you reach retirement age. Here are a few questions to consider to help you start thinking about your retirement and help you with the pension planning process:
- Will your mortgage be repaid by the time you retire?
- Your fuel bills will likely be higher as you will be home more. Could you take energy efficiency measures for your home?
- Will you have any debts when you retire?
- How will retirement affect your expenses?
- Will your pension need to support your partner too?
- Will you have any other income in retirement from savings or investments?
- What age can you claim your state pension?
As you answer these questions and start devising a financial plan, it will then be crucial to take appropriate steps to protect and grow your wealth. This is where the advice of a professional wealth manager can be hugely beneficial to knowing your options, and plotting the best financial course ahead.
Why Reviewing Your Pension Plan Is Important
Once you have a pension plan in place it is important to regularly review your pension plan, it is good practice to review your plan when there are changes in your circumstances such as marriage, divorce, change of jobs or if you are unable to work.
If you are in Essex and are looking for pension advice, our expert team of advisers at Montage can provide support with all aspects of pension and retirement planning. As an independent financial adviser in Essex, Montage provide pension advice to our clients to ensure they can build a sufficient pension pot for a financially secure retirement.
We work to a structured plan to ensure we understand your personal circumstances and financial goals so that we can match our advice to meet your needs. At Montage, our specialist advisers have the permissions required for final salary transfers and can help you navigate the complexities of transferring your final salary pension.
At Montage WM, we believe that financial planning should work mainly for people. Not for the financial product sellers. The key to realising your desired lifestyle is getting the right facts about the options available to you.
By partnering with Montage, we can guide you through the complex, shifting financial landscape before you. To have a friendly, free no-obligation chat with a financial adviser, call us on 01245 506010 or email via email@example.com.