"Retirement is not the end of the road. It's the beginning of your journey."
Anon
Pension planning
A pension is not saving.
It’s investing in your future.
Retirement should be a time where you live the life you want. A time to enjoy hobbies, to explore new places, to tackle new challenges and to make the most of every moment. But to do this, you’ll need to ensure you have a steady income once you can no longer rely on a working salary.
Here To Help
Planning for your future can be intimidating. There’s a lot to consider and many financial responsibilities you will have to ensure you’ve covered before you can get started.
Making sure you’ve balanced your finances to see you through not only the short term, but also long term, can be a long process, especially if you’re tackling it alone.
Across all the pages in this section, we provide a series of guides to help you work out what you could be looking for when it comes to planning your pension, so when that time comes to start winding down, we can help you.
CHOOSE THE ADVISER WHO UNDERSTANDS YOUR NEEDS.
Planning for Retirement
There’s no set retirement age in the UK anymore, so as long as you’ve done the maths and you know how much you can survive on from what age, you can retire when suits. Realistically however, although you can access your defined contribution pension at any age from 55, you will probably need to hang on a little longer if the money is to last for your whole retirement.
How do I work it out?
Retirement can be almost a third of your life, so you’ll want to make sure you can support yourself to live comfortably during your later years. So, one of the first things you want to establish is how much do you need to do this?
One of the easiest ways of working out what your ideal retirement income would be is the 70/50 rule. This rule suggests an annual income target of 70% or 50% of your current working income.
What are the limitations?
It’s good to aim to contribute a proportion of your wages every month to your pension, and if you’re workplace has an auto-enrol scheme, then this budgeting is something you won’t need to spend too long thinking about.
However, bear in mind that the most you can pay into a pension each tax year is £40,000 and if you exceed this, you won’t receive the tax relief on the extra amount, and you will be faced with an annual allowance charge. The Standard Lifetime Allowance is £1,055,000 before you trigger any extra tax charges.
Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email [email protected]
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Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381
Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042
Will writing and some aspects of tax planning are not regulated by the Financial Conduct Authority.
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