If you are worried about what you need to save for retirement Enable’s IFAs in Bishops Stortford will be able to talk you through your options. A relatively comfortable retirement may not cost as much as you think. You are not alone to have concerns recently a study from Scottish Widows found that more than one in five people (22%) believe they will never be able to stop working.
Enable’s IFAs agree that it is important to make every effort to squirrel away as much cash as we can, but even if you have done it can be easy to get discouraged about the pension results. Looking at your private pension pot which is only forecast to deliver a £10,000 annual income doesn’t necessarily conjure up an image of a comfortable retirement. But you might not need as much money as you think.
Tax is an important consideration at every stage of life you’re in, but it’s particularly true once you come to retirement. It’s worth remembering that you don’t pay National Insurance on pension income. Many people also drop down a band once they give up work, to become basic rate taxpayers.
Another thing to consider is that your costs in retirement are likely to look rather different from your current outgoings in employment. Hopefully, the mortgage will have been paid off, the children should be more independent. You won’t have to pay to get to work every day, or having to worry about the additional costs that come from being employed, whether that’s buying lunch, purchasing work clothes and so on.
Even though it may not be all roses the state pension still has a role to play in retirement incomes. While your overall salary may be far higher during your working life than in retirement, your actual disposable income may work out to be pretty similar. Enable’s IFAs can help you look at your retirement income planning.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain.
Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.