Seven ways to make the right choices at retirement

Seven ways to make the right choices at retirement

Transferring out of a Final Salary scheme is unlikely to be in the best interests of most people.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

As you approach retirement you are probably going to have a few choices to make. Decisions about your retirement and how much you will need to live a comfortable life are important.

At Pensionlite, our team of experienced financial advisers have the industry knowledge to help you plan for your retirement. They will be able to create a tailored plan to suit your goals and aspirations and provide you with peace of mind.

Retirement income

Chances are that over your working life you will have a number of pensions with different providers. This is common, as each new job usually starts with a new pension. If you are unable to locate your missing pensions then we can help.

Budget for retirement

A simple and effective way of making sure you have enough for retirement is to create a budget. Make a list of all your outgoings which, should include bills and luxuries like holidays, etc. Take into account any savings or investments that you might have.

Once you have this budget it will give you a clear view as to how much you will have and how much you will need in retirement. If there are any non-essential expenses then consider if these are a necessity or if they can be cut.

Pension savings

Another way that you can make sure you have enough in retirement is with investments. At Pensionlite our wealth management team are able to help review any investments you have. They will be able to advise you as to whether your investments are working for you.

They will also be able to advise you on the best place to invest your money so that it can give you the best return, subject to your circumstances and attitude to investment risk.

Clear your debts

One of the biggest things to affect your retirement income will be any outstanding debt. Of course, most of us will be paying our mortgage and hopefully by the time we come to retire there should only be a few payments remaining. Look for ways to clear any debt as quickly as possible by overpaying if your budget allows.

By getting yourself debt-free you will increase your available spending money. With the average life expectancy increased for males and females, your retirement could last 20 years or more.

Boost your retirement income

A pension is one of the most tax-efficient ways that you can save for your retirement. There are many ways that you can increase the value of your pension

Any pension contributions you make qualify for tax relief of up to 45% from the government depending on your earnings. Basic tax relief of 20% will be automatically added, if you are a higher rate taxpayer you must claim additional relief through your annual tax return.

Decide when to start taking your pension

This can be a big decision to make, which is why seeking advice from a financial adviser is the best course of action. Some people may choose to work long into retirement whereas others are keen to follow their retirement plan and retire early.

Get advice and finalise your decisions

If you would like to speak to one of our expert financial advisers you can get in touch with the team here. We would be more than happy to discuss your retirement plans and offer advice on how you can make the most of your financial future.