At Four Wealth Management, we help many clients who are approaching retirement age. The sooner you start to plan ahead for your retirement, the more options that will be available to you.
Below are some key steps that our financial advisers discuss with those who are thinking about their retirement.
Calculate your income needs
If you are approaching retirement it is important to calculate how much money you need each month to cover your basic needs and then to establish how much income you would like to receive each month to enable you to enjoy your retirement.
Plan for your income requirements to change
It is likely that your income needs will vary throughout retirement.
Many people spend more when they initially retire to enable them to enjoy their free time. Typically spending then slows down in retirement. It is likely to increase again as you get older and start to need to cover healthcare costs.
Planning for care is an important part of moving into retirement. Care can be very costly so it is important that you plan ahead and make sure that you have a plan for covering it.
Find out more about long term care
Make sure you don’t run out of money at retirement
Running out of money is a real concern for many people. Having a financial adviser can be invaluable when you are planning for your retirement income as your adviser will explore all of your options for budgeting and taking income. They will calculate how much you can afford to withdraw each month to help prevent you from running out of money.
Utilise your tax allowances
There are many tax-free allowances that you should make sure you are fully utilising such as personal savings allowance, dividend allowance and your annual ISA allowance.
Tax rules are complex and change often but a financial adviser at Four Wealth Management can help you to establish which allowances you could benefit from.
Consider using assets other than your pension
At Four Wealth Management, our financial advisers can calculate the most tax-efficient way for you to take your income when you retire. You may find that it is more tax-efficient to receive income from other sources initially rather than using your pension pot straight away. This is because your pension pot is outside of your estate for Inheritance Tax purposes.
Find out more about retirement planning
Take advice
Decisions made when planning for your retirement are important as they can define how you live for the rest of your life. To make sure you haven’t made any mistakes, a financial adviser can check over your retirement plans and give you a second opinion.
Book a no-obligation meeting today
To plan your retirement, book a no-obligation meeting with a financial adviser at Four Wealth Management today.
Book online or call 0117 973 0500.
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.
