A clear path to your retirement
Retirement planning is not something you do just once, file away and then forget about. It is an ongoing process that changes with your life’s goals, personal situation and priorities. Planning a route to your retirement involves making a series of good financial decisions and enlisting the right kind of support along the way.
It’s all about setting out your strategy and then finding ways to achieve this goal. Then you need to look at the kinds of retirement accounts and services that will help you to get there. It’s more than just careful saving – in order to generate the funds you need, you should also be investing.
You also need to consider the tax implications of retiring and withdrawing funds from any of these accounts.
There are several key steps along this journey. The first is to understand the timescales. The age you are now and the age you want to retire are the two key dates to keep in mind. The longer the gap between the two, the more risk your portfolio can withstand. The closer the two numbers, the more cautious you need to be.
Then you need to determine your retirement spending needs. This can be tricky as there are many variables at play, but being realistic about how much you want is very important. You should work out what you spend now and then think about where savings can be made, and what other expenditure you might be looking at during your retirement.
Don’t forget the tax. As we mentioned above, most retirement income is taxable, so you should factor this into any retirement plan. Your actual rate of return on your pension should be calculated after tax.
How much are you willing to risk in order to meet your retirement objectives? This may very well be determined by your age and current financial situation. You need to make sure that you are aware of, and comfortable with, any risk that you expose yourself to.
You also need to make sure that you stay on top of any retirement planning. It’s not enough to assume it will take care of itself. You also need to have life insurance and a will in place to ensure that your estate will be dealt with according to your wishes should anything happen.
The burden of retirement planning is increasingly falling on individuals, with fewer people having jobs for life with the same company these days. You need to strike the balance between realistic expectations and your desired standard of living.
If you would like more information about planning for your retirement, or to get help with cashflow forecasting, then you can get in touch with our team at Abbeygate Wealth Management. It will just take a few minutes to fill out a form and see what kind of income you could be looking at during your retirement. We’re always happy to chat and there are no obligations. Start planning a clear path to your retirement today.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place. Wills are not regulated by the Financial Conduct Authority.