nEWS AND INSIGHTS

Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

When to start your retirement planning

Retirement planning is one of the key areas that clients come to Four Wealth Management for. Retirement planning is important as decisions may be irrevocable and could define how you live the rest of our life.

What age should you start planning your retirement?

Our financial advisers are often asked at what age clients should start retirement planning. There is no set age you should start planning, however starting your pension when you are young will allow the maximum time for your pension to potentially grow in value. You can start by saving small amounts monthly and as your income improves, you can increase your pension contributions.

Auto-enrolment

The government introduced an auto-enrolment scheme to get people to start saving for their pension early. If you are aged between 22 and the state pension age, earn over £10,000 per year and work in the UK, you will be automatically enrolled into a workplace pension scheme. The scheme enables you to take advantage of employer contributions. Your employer must contribute into your pension monthly.

At Four Wealth Management, our advisers can review your current workplace pension and make recommendations tailored to you.

How to start planning your retirement

Your retirement is likely to last 20 years or more. Contributing into a private pension when you are working will help towards you having enough money when you are retired. You can change your contribution amount at any time or top up with additional lump sums subject to certain limits. The government will give you up to 45% extra in tax relief, on the basis that any tax relief above the basic rate is claimed via your annual tax return. Our advisers can help you to build a good pension and a secure financial future.

How much should I save in my pension?

The amount you should save depends on the amount you can afford to save, how many years you have to save and what your income needs will be when you retire. Our advisers can work with you to calculate how much money you are likely to need for a comfortable retirement and will help you to achieve this.

Starting your pension later in your life

If you start a pension later in your working life, you may have a better idea of what your needs at retirement may be. However, you will have less time to reach this goal, which means you may have to contribute more into your pension each month.

Can you pay lump sums into a pension?

You can pay money into your pension at any point, and this can be in the form of a lump sum or monthly savings. You will receive tax relief on pension contributions up to £40,000 per year. The sooner you pay in your lump sum, the more time it has to potentially grow and give you more income at retirement. If you are closer to retirement, putting in a lump sum as well as saving monthly will help make sure you have more in your pension pot when you retire.

Arrange a Professional Review of your Pension

Adjusting your pension contributions

Things are likely to change as you go through your working life, your adviser will review your pension situation regularly. Adjustments may be needed when there is a change in your circumstances, such as getting married or divorced, when you change jobs or if you cannot work for any reason.

Start planning your retirement today

Your retirement is likely to be a large portion of your life; our financial advisers can help you start planning your retirement. Having a retirement plan tailored to your circumstances will help you to have a comfortable retirement and be able to retire when you choose.

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.

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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When to start your retirement planning
2019-04-11T12:16:04+01:00
FourWealth Management