Hennelly Finance can make planning for a comfortable retirement easy.
Pensions, do I need one?
These days generally people are living longer and leading more active lives in retirement. As a result, it is more important than ever for you to think about where your income will come from when you retire. While many people think they can rely on the State pension, the reality is that the State pension is only a safety net and represents less than a third of the average national wage.
Pensions are an essential part of a successful financial plan. A pension is the money that you will live on when you stop working. In effect, it will replace the salary or wages that you earned before retirement.
Your pension is a special type of savings plan, with important tax breaks, that allows you to build up money to provide yourself with an income in retirement. It is a long-term arrangement with restricted access to the funds until you reach retirement age.
When you stop working, your salary or earning capacity will come to an end, however the ongoing costs of living will not! It is fair to say that each individual will still need a substantial regular income to maintain a decent standard of living.
So, the question to be asked is ‘where will this income come from’? Unless you have other assets like property, rental income or a large amount of savings your pension (or pensions) will almost certainly be your main source of income once you reach retirement age.
We all have ambitious plans to provide ourselves with a secure income in retirement so it is important to make sure you get the right pension advice to help you achieve your financial and lifestyle goals.
Everyone loves an annual sun holiday, but have you properly considered making arrangements for the longest holiday of your life, your retirement?
Retirement planning remains of the few ways in which an individual or company can make retirement provisions in a tax efficient manner. There are a myriad of rules and regulations governing pensions. Getting impartial expert advice will help ensure that your retirement planning is structured to maximise the planning benefits available.
Just look at the benefits of a pension – generous tax relief, often free employer contributions, tax free investment returns and the opportunity to take a large part of your pension fund back as tax free cash when you retire. Most people underestimate how much they will need to save to provide an adequate income when they reach retirement age. That is why our financial advisors provide pension advice tailored to your specific circumstances.
What do you want to do in retirement?
What are your goals?
What do you want to spend your money on?
How much do you need so you can do everything you want?
What assets and sources of income do you already have, including savings, property and your business?
What is the shortfall between what you have and what you need?
What are the most tax efficient ways of bridging that shortfall?
The earlier you start a pension and your retirement planning, the easier it could be to build up your fund, which will allow you enjoy a comfortable retirement. The first step is to estimate what your monthly pension savings should be to help secure the future you want. With your personal financial advisor at Hennelly Finance, you can be guaranteed of qualified, independent pension advice that can help secure your future.
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