It is never too early to start saving for your retirement. As some of the pension decisions you make now may not be reversed later, it is important you make the right choices and shape your retirement plans to best meet your individual needs and circumstances.
When we offer pension advice to young people about saving for their retirement we find there are two issues that may stop millennials saving. Many young people are concerned that retirement appears a long way off, and also they do not have spare cash to save for their retirement as they may have student debt to pay off or be saving a deposit to buy a house.
Read our brochure Your Retirement Options - Freedom & Choice: if you are thinking of starting a pension as it will help you understand the new pension changes and give examples of what you need to do now whatever your age and situation.
Aaron Abraham, Independent Financial Adviser, Harpenden, Hertfordshire reviews what you need to consider when you set up a pension?
1. It makes sense to have a financial plan as early as possible to achieve your financial goals in retirement. We recommend that young people in full time employment start saving into a pension as early as possible. By starting young it will reduce the amount you will need to save later. If you are eligible for a workplace pension both you and your employer and the government can add to your pension pot. If you work for yourself and do not qualify for a workplace pension you can set up a personal pension and add money to your pension pot.
2. Use our Lonsdale Lifetime Financial Planner to calculate your retirement income. Set up a Lifetime Financial plan to see how current and future income and expenditure decisions and life events will affect your retirement income.
When we set up your Lifetime Financial Plan, your Financial Adviser will ask you the following questions:
When would you like to retire?
How much can you afford to save today?
Do you have any savings and where are they invested?
What is your current income and expenditure?
Does your employer offer a workplace pension and are you eligible to join?
How much income do you need to fund your lifestyle now and in retirement?
What level of savings do you require to generate your required income?
Are you currently utilising all available tax allowances?
3. Keep your financial plan on track by annually reviewing it with your Financial Adviser. If you plan and regularly review your financial priorities you are more likely to achieve them.
If you would like more information about saving for your retirement we recommend you read our Beginner’s Guide to Investing. Lonsdale Services financial advisers offer a free initial pension consultation. Contact a financial adviser near you, complete our booking form or phone 01727 845500 for more information.