What is retirement planning?
Retirement planning is determining the amount of income you hope to have each month when you retire and how you can achieve this. Most people need two-thirds of their annual income when they were working to live on when they are retired in order to maintain their lifestyle.
Life expectancy is increasing, which means you should start preparing for your retirement earlier to help provide you with sufficient income when you retire.
The retirement landscape is constantly changing and there are numerous options available to you when you retire, so it can be hard to know what the most appropriate solution is. Our experienced Financial Advisers can help you with all aspects of retirement, whether you are approaching retirement, are planning ahead for your future or want to review your existing retirement plans. Our advisers will work with you to define your goals at retirement and create a bespoke retirement plan tailored to your individual needs.
When can I retire?
At Four Wealth Management, our financial advisers can help you to prepare for retirement by calculating how big your retirement fund needs to be. If you are on the average UK salary, you will potentially need in the region of £300,000 in your pension to maintain your lifestyle. This may seem unachievable, however your adviser will work with you to determine how much you need to save per month to reach your goals.
Could you retire earlier?
If you start retirement planning early, you might be able to retire earlier than you thought. Subject to the minimum age of 55 there is no set retirement age and many people are uncertain about when they have enough money in their pension to be able to retire comfortably. If you have a target age you want to retire, your financial adviser will create a plan to help you to achieve this.
Need help to achieve your retirement goals?
Planning your retirement alone can be overwhelming, at Four Wealth Management we work with you to define your goals for your retirement and define the best steps to help you achieve these.
Am I too old to start planning my retirement?
The earlier you start planning your retirement, the more options you will have. However, it is never too late to boost your pension pot and work on improving your lifestyle at retirement. Your Financial Adviser can work with you to recommend ways to increase your pension savings.
A pension is one of the most tax-efficient ways to save for your future as the government pays between 20%-45% additional tax relief on top of your contribution. Higher and additional tax relief must be claimed through your annual tax return.
Decisions made when planning for retirement are important as they may be irrevocable and could define how you live for the rest of your life
When you are ready to retire, you need to consider all your options to take income from your pension pot. Your Financial Adviser will help you decide how and when you take tax-free lump sum(s).
Working with a carefully selected panel of providers through St. James’s Place, we offer the following range of products on retirement:
• Retirement account which features bespoke drawdown options
• Self-invested personal pension (SIPPs)
• Trustee schemes
Your Four Wealth Management adviser will guide you through all the options to help you make the right decisions with regards to your financial planning, so that you can have peace of mind and make the most of your retirement.
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 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.
If you are on the average UK salary, you will potentially need in the region of £300,000 in your pension to maintain your lifestyle
Frequently asked questions
The earlier you start planning for retirement, the more money you could potentially have for the future. Review your income and finances, and if you can afford to put aside money into a pension scheme, consider starting the process as soon as possible.
The current full State Pension is £168.60 per week (2019/20 tax year). However, the amount you receive depends on your National Insurance record.
The amount that you need to retire comfortably depends on your individual circumstances. Your Financial Adviser will work with you to determine how much you need in your pension pot to maintain your current lifestyle.
No. When you retire, your employer and pension provider will tell HMRC.
You can normally take a cash lump sum of up to 25% of the value of your pension fund tax-free.
At Four Wealth Management, your financial adviser will work with you to determine what age you can retire and have enough income from your pension to live comfortably. Commonly people retire between the ages of 55 and 70. You can access a private pension from the age of 55 which is expected to rise to 57 in 2028. The state pension age is currently 65 but this is also set to rise.