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    Tag: Retirement

    Common myths for financial planning

    Posted on by Laura Bannan

    The thought of financial planning can be overwhelming and the amount of conflicting advice can leave you feeling lost when it comes to planning ahead to make the most of your financial situation. To help, we explore a number of common myths when it comes to financial planning.

    Myth: Financial planning is only needed if you’re wealthy

    Although it is wise to plan your finances well if you have large amounts of wealth, it can still be hugely valuable even for those with modest wealth. Understanding your financial situation in detail and how to make the most out of it can help you plan in a way that is going to be most beneficial, and investing even a small amount can still provide good returns over time.

    It’s important to be clear of your lifestyle aspirations and then tailor your finances to achieving those goals, this is something your financial planner will be able to help you map out and ensure you’re planning ahead accordingly for the short, medium and longer term.

    At PM+M, once we have spent time getting to know our clients and understanding their needs and objectives, we can then test different scenarios using our cashflow forecast software to understand the best plan of action for the individual circumstances and objectives.

    Myth: I’m too young for retirement planning

    Retirement can be achieved at a variety of ages depending on many different factors, some people are able to retire much earlier than others by working extremely hard and with some extensive financial planning. If this is something you are aiming for, or even if you simply wish to plan ahead to ensure you are going to be comfortable in later life, the sooner you start planning the better!

    In terms of your pension for instance, the earlier you begin saving into your pension, the more time your money has to grow and it is highly likely something you will thank your younger self for in years to come.

    By looking ahead as to what you would like your retirement to look like in an ideal world, you are able to plan what steps you would need to take financially to allow you to achieve this. The more time you have to do this, the more you are able to spread the financial impact across a greater number of years, therefore reducing the impact you are likely to feel on your finances. This would also provide more time to make any necessary changes, should your desired retirement plans change.

    We can use our cashflow forecast software to test different scenarios to help understand the best plan of action for your individual circumstances and objectives.

    Myth: I can only invest if I have large amounts of money

    Obviously the more money you invest, the greater returns you are likely to see, but this does not mean it’s not worth investing smaller amounts of money.

    Whatever the amount, you may want to consider putting your money into medium or long-term investments (five years or more). Unlike savings, investments have more potential to grow over time. You have tax efficient options, for example, an ISA or a pension. A small amount regularly invested each month over a few years can often result in a good return over time, providing a strong investment strategy is in place.

    At PM+M, we offer a bespoke managed portfolio service (in partnership with AJ Bell) which we continually monitor and proactively make fund and asset allocation changes when we feel as though this is necessary. You can find out more about our portfolio service here.

    Myth: The State Pension will be enough for my retirement

    Depending on what you want to achieve from your retirement, you may find that relying on the state pension could leave you drastically short of achieving what you have in mind. The full State Pension is £221.20 per week for the 2024/25 tax year (up from £203.85 in 2023/24), providing you have paid the necessary 35 years National Insurance. This equates to around £11,502 a year which works out much less than you would earn if you were working a full-time job on minimum wage, this comparison helps put the figures into perspective.

    With the ever-rising costs of living, it is certainly worth doing your sums carefully and if you are planning on relying solely on your state pension, that it will enable you to live a lifestyle you are comfortable with in retirement.

    However, the State Pension does provide an invaluable income underpin.

    Get in touch

    For further information or advice on any of the common myths discussed above, contact a member of our financial planning team today to talk through your personal circumstances, email financialplanning@pmm.co.uk or 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.

    Where will my income come from when I retire?

    Posted on by Laura Bannan

    When you reach retirement age and no longer work, it’s important to have planned ahead and know exactly where your income is going to come from to enable you to enjoy the retirement lifestyle you would like. The first thing to consider, is the possible sources of income to understand what may work best for you.

    Pension plans

    There are 2 main types of pension which are generally referred to as defined contribution pensions (a pension pot which is based on how much is paid in) and defined benefit pensions (usually a workplace pension based on your salary and how long you’ve worked for your employer). It’s worth remembering that you are able to have several pension plans if you wish.

    With a defined contribution plan, potentially and dependant on various rules, a maximum of £60,000 (or 100% of your earnings, whichever is lowest) might be available to be paid into your pension And tax relief can be obtained. Your money will be invested, so any income you are able to take from the plan when you retire will be partly dictated by a combination of how much you have paid in and investment performance. You would be able to withdraw money from age 55 (changing to 57 from April 2028). 25% of the plan’s value is usually tax-free, with the remaining 75% being taxable at your marginal rate.

    With a defined benefit pension plan, how much you will get would depend on your salary when you retire or leave the scheme. Sometimes it is worked out using your average salary and will also depend on how long you have been part of the scheme for. You would receive a pension income for the rest of your life with a defined benefit plan and the age at which you could start drawing money from your plan would depend on the individual scheme. There could be the possibility to take a tax-free lump sum from a defined benefit plan, or even the option to take your whole plan as a lump sum.

    State pension

    The state pension could potentially make up a large portion of your retirement income but isn’t always enough on its own to fund a retirement lifestyle, depending on your individual requirements.

    Men born on or after 6 April 1951 and women born on or after 6 April 1953 can claim the new State Pension once they reach State Pension age, which is currently 66 but rising to 67 by 2028. The full amount you are able to get is just over £10,600 per year, if you have made the required national insurance contributions.

    Property ownership

    It could be a possibility that some of your retirement income comes from rental income if you are the owner of any buy-to-let properties, and this can be a great source of retirement income. However, it should not be relied on as it is not possible to guarantee that the property will be let out all of the time. You would also be required to pay income tax on any rental income you receive.

    Investment options

    You may want to consider putting your money into medium or long-term investments (five years or more). Unlike savings, investments have more potential to grow over time. You have tax efficient options, for example an ISA.

    At PM+M, we offer a bespoke managed portfolio service (in partnership with AJ Bell) which we continually monitor, conduct ongoing due diligence in funds held in the portfolio and proactively make fund and asset allocation changes when we feel as though this is necessary. You can find out more about our portfolio service here.

    Utilising tax breaks

    Investments aren’t the only way you can protect your savings from losing value. You should look to make use of any tax breaks available to help make the most of your savings and investments.

    ISAs are a popular and tax-efficient way of investing your cash in the long term, a £20,000 tax-free allowance per tax year is available to everyone and goes a long way to help you maintain the value of your money. There are four types of ISAs available:

    • Cash ISAs
    • Stocks and shares ISA
    • Innovative finance ISA
    • Lifetime ISA

    How do I know if I will have enough?

    This is a common question we are asked and unfortunately there is no ‘one size fits all’ solution when it comes to retirement planning, and the answer could vary greatly for each individual based on their specific circumstances. Research from Aviva has found that one tenth of the UK’s workforce does not know if they will be able to have a comfortable level of income in retirement.

    When planning for retirement, it is important to consider seeking support and guidance from an experienced financial adviser. Typically, your adviser will work with you to establish a clear understanding of what income will be required to support your proposed retirement, when you plan to retire and what assets are already in place to support this. With the information, your adviser will be able to build a cashflow model, using sensible assumptions, to work backwards and highlight what you should be saving to achieve your desired retirement.

    Get in touch

    For further information or advice, contact a member of our financial planning team by emailing equiries@pmm.co.uk or call 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.

    How to spend your pension savings sustainably

    Posted on by Laura Bannan

    HOW TO SPEND YOUR PENSION SAVINGS SUSTAINABLY

    For many, saving into your pension is something that has formed a huge part of your life and although it may seem like a very long time before you will be able to access your pension savings, it often comes around quicker than you think. Building up the pension fund (accumulation) is often the part of the process which comes naturally, but one area that is sometimes overlooked is thinking about the process of how you are going to extract that money (decumulation).

    Very few have the luxury of a defined benefit or final salary pension these days, where your pension income is a defined amount for life, rather than being determined by the amount of money you have actually contributed to the pension. Therefore, the majority of us have to decide when and how to withdraw funds. The last thing you would want would be to save into your pension for your entire life and then run out prematurely because you have spent too much, too quickly.

    HOW SHOULD I PLAN?

    Exactly what your plan should look like will vary dramatically based on your individual circumstances and there are many external factors that will need to be taken into account, some of which will be completely out of your control. For example, you have no way of accurately predicting your life expectancy, market performance or levels of inflation – however, you could think about how you may cope with such scenarios should they happen.

    KEY CONSIDERATIONS

    • Where is your money?

    You may have a mix of workplace, private and state pensions which all kick in at different ages. You would also need to find out what state pension you will be entitled to. Perhaps you are lucky enough to hold some money outside of pensions, maybe in savings, the stock market or rent from property. This would all need to be considered as part of your plan.

    • When do you want to retire?

    The earlier you begin your retirement, the longer your money will need to last you. You will need to ensure that you have enough money to live the lifestyle you desire and this could have an impact on what age you are realistically able to do that. Obviously, no one can accurately predict their life expectancy so it’s difficult to know how long you will need your money to last but there are tools we can use to help you plan accordingly for different situations, along with the correct expert advice.

    • How much retirement income would you like?

    A very general guide that is often worked to is that it’s a good idea to aim for a retirement income which is two thirds of your current salary, but there are many outside factors which would also need to be considered. There are tools available to help estimate what a minimum, moderate and comfortable retirement might look like for your personal circumstances and we would be able to advise the best course of action to get you there. You could even create an expected budget further to a review of what you currently spend.

    • How much retirement income do you have?

    Although it’s wise to spend time thinking about the kind of retirement you would like, it is obviously heavily determined by the reality of the retirement income you have available and how long it needs to last. We can help demonstrate a number of different scenarios and find one that will balance your desired income with the reality of what is actually achievable, by looking closely at your individual circumstances and discussing all the possible options in detail with you.

    • How can I structure my retirement income?

    Alongside your state pension, there is the option to secure an annuity with part or all of your retirement fund. This would provide you with a guaranteed income for life, providing you with a solid income underpin. An alternative, or something that can work alongside an annuity is the option of accessing your pension flexibly via Flexi Access Drawdown. Funds remain invested, can rise and fall in value, but you have the option to elect how much you draw from your pot each year. However, you have to remain mindful the drawdown pot is exhaustible.

    SUMMARY

    As the above highlights, it is a great idea to look into your pension savings and how you plan to use them in retirement way in advance. This can help you to plan if there are any measures you may need to consider to help you achieve the retirement you desire. It will also help to give you the peace of mind that your retirement is going to be everything you want before getting there and realising it’s too late.

    At PM+M, we can help answer all of the above questions. We do this by creating a personalised cashflow plan which is based upon your current circumstances and an agreed set of assumptions. A cashflow forecast can help you to answer the following:

    • How much do I need to save?
    • How much does my fund need to grow each year?
    • When do I need to retire?
    • How much can I afford to spend during retirement?
    • What is my income underpin requirement?

    GET IN TOUCH

    For further information or advice on your pension savings and how best to plan for your retirement, get in touch with a member of our financial planning team by emailing financialplanning@pmm.co.uk or calling 01254 679131.

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.  

    Retirement planning at different stages of life

    Posted on by Katie Heaton

    It is often a misconception that retirement planning is only something that you need to think about later in life. However, the sooner you start to plan for your retirement and consider your pension options, the better, and the more chance you will have of building up the finances you require to live your desired lifestyle when you reach retirement age.

    We take a look at some of the key things to consider during different stages of your life to ensure you get the most out of your retirement.

    Age 20-35

    This is roughly the likely age you will start your first full time job and probably a stage of your life where the last thing you are thinking about is your pension. However, this is without a doubt the best time to start saving into your pension as the earlier you begin, the more time your money has to grow and it is highly likely to be something you will thank your younger self for in years to come.

    At this age you may have other financial commitments which you consider a higher priority, such as saving to buy your first house, clearing any student debt you may have, or simply having as much disposable income as possible to lead a fun and carefree lifestyle.

    You will also be earning less at this stage of life, therefore you might not have the flexibility to increase your payments into a pension as much as you may ideally like to.

    By law your employer must automatically enrol you into a pension scheme (providing you are eligible for automatic enrolment) and make contributions on your behalf. Increasing that by paying in even a small amount yourself can make a huge difference in the long term.

    Age 35-50

    By this age, you may have increasing responsibilities and be handling the demands of a mortgage and the extra costs that having children may bring. However, you may be earning more than when you began your career and may be able to consider paying more into your pension as a result. In fact, if you are earning more than £50,270 a year, you would qualify for 40% income tax relief on your pension contributions, so it is certainly something worth exploring.

    It may also be a good idea during this stage of life to look further ahead and begin thinking about the realistic sort of lifestyle you are hoping to live when you reach retirement, and maybe more importantly, when you would like to retire and what you would need to do to achieve that.

    Age 50-65

    Once you reach this stage of life, you are probably much more focused on your retirement plans.

    Although you will now be getting closer to retirement age, if you are worried that your saving pot is not going to be what you were hoping for, it’s important not to panic and there can still be plenty of time to make a difference.

    Hopefully as you reach this age some of your financial commitments may begin to ease. You may be getting close to paying off your mortgage, your children could be relying on you far less financially and you potentially may also be earning the most you have earned as you climb to the top of the ladder in your career. All these factors may mean that you are in a position to consider ploughing more money into your pension, especially if you’re worried that previous contributions may have left you short of your ideal.

    If you are fortunate enough to have built up any savings and are happy to forgo the access to the funds, you could look to make a lump sum transfer to your pension which could give you a great boost. The most you are able to pay into a pension in any year and receive the upfront tax relief is 100% of your earnings (normally up to £40,000) or £4,000, whichever is lower. However, dependant on earnings, your pension contribution allowance could be capped at a lower level and therefore seeking advice is important.

    Potentially you could pay in more if you are eligible for ‘carry forward’, this is where you can carry over any unused allowance from the last three tax years.

    Having a much clearer idea of what you are looking to achieve in retirement can make it far easier to decide which of the above steps are going to be right for you. The more precise you can be with what you are looking for, the easier it is to implement a specific plan to get you there.

    Age 65 plus

    By this age, your main focus is going to be how you use the wealth you have worked so hard to build up throughout your lifetime to provide you with the income you need to live your desired lifestyle.

    Obviously, this will be different for everyone but when looking specifically at your pension you will have two options to consider. The first is buying an annuity and securing a guaranteed lifelong income from this. The second is taking payments flexibly from your pension using what is referred to as Flexi Access Drawdown.

    Each option has different benefits and downsides so it’s something that needs careful thought and expert advice.

    The drawdown option is good because you are able to draw money out as and when you please but the main downside of this is that you do run the risk of potentially running out of money further down the line, particularly if your investments don’t perform as well as you were expecting them to. However, you do continue to benefit from investment market growth over your retirement journey.

    The annuity route provides you with the reassurance that you will get a fixed and guaranteed income for the rest of your life, but this decision cannot be reversed once chosen and you would no longer have access to the capital, which means there would be no inheritance to leave to your offspring from your pension.

    However, the great thing is that you are able to use a combination of the two, giving you the best of both worlds and enabling you to tailor your options specifically to your individual circumstances and what you are looking to achieve.

    Finally, if you have paid the qualifying national insurance contributions throughout your working life, you will also be entitled to a full state pension once you reach 66 (67 from 2028). That could give you a further £185.15 a week which could make a huge difference.

    Summary

    Hopefully you are now a little clearer about the sorts of things you should be thinking about during the different stages of your life in relation to your retirement, although these tips can be useful, tailored advice to your specific circumstances is always the best way to ensure you’re planning for the future you want to achieve and getting the most from your investments.

    For further information or advice, contact a member or our financial planning team by emailing enquiries@pmm.co.uk or call 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice. 

    Should I consider switching my pension elsewhere?

    Posted on by Katie Heaton

    Many clients ask us this question and if this is something that has been on your mind, it’s important to look at all the information carefully before deciding if it’s in your best interest to do so. There are many factors that mean if you aren’t careful, you could potentially lose out.

    Why are you looking to transfer?

    Perhaps you are looking to increase the control you have over your pension, hoping for a better return, starting a new job or your existing pension is closing. Whatever the reason, your key considerations should be the same.

    Many providers offer great benefits to keep your pension on their scheme, such as a financial bonus like a guaranteed annuity rate, life assurance cover, guaranteed growth rates or a preferential rate of tax free cash. This alone could be enough of a financial incentive to mean it wouldn’t make sense to transfer to a new provider.

    You may have been tempted by an attractive offer from a different provider but always consider if the headline offer is as good as it may first seem when you take everything into account. Pension rewards can rarely be carried between providers, and you may be faced with costs for making the transfer. Your financial adviser can help you look after your pension either with the current provider or with a new provider.

    What would the cost be?

    There may be exit costs involved if you decide to leave or transfer your current pension plan and this amount tends to vary between providers. Very rarely there may be no exit fees to pay, so it’s certainly something worth looking into. Your adviser would also likely charge you for their time, work and advice.

    Will I lose out on my bonuses?

    As briefly mentioned above, there are often certain bonuses included in pension schemes to encourage long-term savings, which is essentially what pensions are all about. You need to be very careful that transferring your pension won’t mean you are going to lose out on any attractive financial benefits. For example, if you were to lose a life assurance policy by transferring, potentially it could actually cost you more to replace the life assurance than you stand to save.

    It’s vital to weigh up the pros and cons thoroughly as once you have made the decision to transfer, there will be no going back if you later decide it may not have been the best decision after all.

    Other things to consider

    Although more common with older pension schemes, guaranteed annuity rates mean that at a certain age, part or all of your pension pot will be transferred into a guaranteed lifetime income. If this applies to your pension, you will normally get a much better rate with an existing scheme than you would buying an annuity from a completely new one.

    If you are thinking about transferring to increase the control you have over your pension or to bring them together in to one pot, it is important to ensure that this represents good value for money and that the underlying investments are appropriate. A financial adviser can help you understand your options and provide their advice.

    If your pension benefits from guaranteed growth rates, a financial adviser could help you understand the growth rate required to meet your requirements during requirement via a cashflow forecast. You could work with your financial adviser to understand whether losing such a guarantee is needed. You may be able to meet your objectives just fine as things stand.

    One reason that individuals often switch their pensions to a new provider is due to the death benefits. Some legacy pension providers would provide a full fund pay out upon death. Pensions do not normally form part of your estate and therefore this scenario may be of consequence to your family.

    If your pension has protected tax free cash, your pension provider will ask you to complete a questionnaire which will enable them to determine the level of protected tax free that is available. This could range considerably.

    You should also remember that it can often take time to transfer a pension and whilst the transfer is taking place, your pension isn’t invested so you could potentially be losing out on any fund rises taking place during this time.

    Summary

    Sometimes it can make perfect financial sense to transfer your pension but only if the positives outweigh the negatives when you take every factor into account. Sometimes it may make perfect sense to leave your pension where it is and simply review the underlying investments held within your current contract. The best way to ensure everything has been covered is to seek expert financial advice at the outset.

    Our specialist financial planning team can look at your current pension and advise on whether looking to transfer would be a sensible option based on your personal circumstances. For further information or advice, contact a member of our financial planning team today by emailing enquiries@pmm.co.uk or call 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.  

    How much will I need for retirement?

    Posted on by Rebecca Campbell

    Common questions we are asked as financial advisers are “Will I have enough money when I retire?” and “How much is enough for retirement?” – there is no ‘one size fits all’ solution when it comes to retirement planning, and we could have different answers for every individual based on their circumstances.

    Research from the Pensions and Lifetime Savings Association (PLSA) highlights that 77% of pension savers are unaware of how much they will need in retirement, which is why the Retirement Living Standards have been developed – painting a picture of the lifestyle you could have in retirement. According to the Standards, £20,800 per year will be enough for a single person to live on for a ‘moderate lifestyle’, or £33,600 for a ‘comfortable lifestyle’, and for couples, it is £30,600 and £49,700 respectively, but what does this mean for you, and how can you ensure you will have enough to sustain the lifestyle you require?

    When planning for retirement, it is important to consider seeking support and guidance from an experienced financial adviser.

    Typically, your adviser will work with you to establish a clear understanding of what income will be required to support your proposed retirement, when you plan to retire and what assets are already in place. With this information, advisers can build a cashflow model, using sensible assumptions, to work backwards and highlight what you should be saving. This clarity is often enough to spark the appetite for an individual to begin implementing a clear financial plan for retirement.

    What can I do now to plan for my retirement?

    Posted on by Laura Boyd

    In our latest blog, PM+M financial planning director, James McIntyre, explores what you can do to ensure you have sufficient funds available for the lifestyle you require when you retire.

    I don’t know about you, but the weeks and months seem to be flying by!? The consequence of this being that it can be hard to find time to prioritise your own personal financial planning needs or find time to consider your future. This is where your financial adviser can step in and assist.

    What do I want from retirement?

    The first step, prior to implementing a plan, is to consider what you want from your retirement. If you know when you plan to retire and have a general sense of how much income will be required to fuel the desired lifestyle and necessary standard of living, you can work backwards and determine how much you need to save.

    Cashflow Planning

    A cashflow analysis can help give you a sense of direction i.e., to understand how much you should be investing, for how long and the required growth rate (pre and post retirement) to ensure sustainability throughout retirement.

    We can also provide some “what if analysis” to test various scenarios e.g., what if I want to retire earlier, what if there was a market crash or what if I didn’t achieve the required growth rate.

    This will then enable you to start saving the right amount, have a sense of when you might be able to retire and understand what growth rate is required.

    Investments

    As we all know, inflation is not our friend, and we are all feeling these pressures. According to the Bank of England, the cost of a loaf of bread has more than doubled over the last 30 years. Therefore, investment growth is going to be essential to maintain the value of your wealth in real terms, as well as to build it ahead of inflation.

    If you invest £100,000 and achieve a net growth rate of 4% pa., it would be worth c. £148,000 after 10 years, but c. £163,000 if a growth rate of 5% pa. is achieved. Your cashflow analysis will help indicate what growth rate you need to achieve to meet the retirement needs you require.  But remember, there is a trade-off between risk and reward. Higher risk investments have great growth potential but could also be subject to greater volatility.

    It’s important to ensure that your investments are also fit for purpose; your financial adviser can help ensure that they are invested in the right way.

    Allowances

    You can potentially contribute up to £20,000 per annum into an ISA and potentially up to £40,000 pa. into a pension. It’s important that you are making the most of your allowances and benefiting from tax efficiency wherever possible.

    But it’s important to speak to your financial adviser as there are certain stipulations and pitfalls when it comes to allowances, for example:

    • The pension annual allowance tapers downwards for high earners
    • If you have already accessed your pension, you may be restricted
    • Employees need to have relevant earnings to back up any pension contribution

    State Pension

    It’s worthwhile using the Gov.uk online tool to see whether you are on track to receive a full state pension, click here. If you aren’t, you may be able make additional voluntary national insurance contributions to fill any gaps you may have in your record. These generally represent great value for money and the break-even point in retirement could be around 4 years.

    Do you need some help?

    If you want to understand what is required to ensure that you have sufficient funds to enjoy the retirement you want, and deserve, please get in touch by clicking the button below.

    Increasing number of over-50s heading for a retirement crisis – are you one of them?

    Posted on by Rebecca Campbell

    According to the latest report by the Pensions Policy Institute (PPI), up to a quarter of individuals nearing retirement (over five million workers) will not have enough money to pay for an ‘adequate’ standard of living.

    Worsened by the pandemic – a large number of over-55s faced increasing levels of redundancies compared to all other age groups*, leading to individuals ending their careers sooner than planned, or before they could afford to.

    The Pensions and Lifetime Savings Association recently reported that only one in three people can expect a ‘moderate’ life in retirement (highlighted in the table below), which is equivalent to £20,200 a year in income.

     

    Single householdCouple household
    Outside LondonLondonOutside LondonLondon
    Minimum£10,500£12,700£16,100£20,300
    Moderate£20,700£24,700£29,900£34,200
    Comfortable£33,900£37,300£48,800£50,600

     

    *Pensions and Lifetime Savings Association

    For a more accurate way of calculating how much is enough in retirement, try using the Money Advice Service’s pension calculator here.

    How to tackle a pension shortfall…

    Contribute more into your pension

    One way to ensure you will have enough for your retirement is to increase your pension contributions whilst you are still working. Current rules allow you to save up to £40,000 (or 100% of your earnings, if this is lower) into a pension, whilst taking advantage of tax reliefs. However, since 6 April 2020, individuals with an adjusted income over £240,000 or a threshold income over £200,000, will have their annual allowance for that tax year restricted – in this case, you may benefit from speaking to a financial adviser to determine the best course of action.

    The PPI have recently called on the government to double the current minimum auto-enrolment contribution to 16% of wages to ensure workers are saving enough for retirement. Stephanie Hawthorne, Pensions World editor, backs this up in her article for ICAEW, stating ‘auto-enrolment pension contributions must rise as a matter of urgency’.

    Why not take this opportunity to review the amount you are paying into your workplace pension and take advantage of employer contributions?

    Ensure you receive a full state pension

    Individuals are able to obtain a ‘state pension forecast’ by visiting the government website here. This tool can be utilised to ensure there are no gaps in your National Insurance contributions – if there is, it may be worth making these up, so you receive as much as possible upon retirement.

    Speak to a financial adviser

    If you are worried about a pension shortfall affecting you, speak to a financial adviser. We can help you consider the following:

    • How much you already have saved into your pension
    • The number of years you have left to work before retirement
    • How much you can afford to contribute to your pension, considering your other financial commitments
    • Whether you are expecting to increase/decrease pension contributions in the future
    • Do you have any other investments, and will they grow between now and retirement?
    • How much will your employer contribute to your pension?

    We also use cashflow modelling software that can consider your assets and expenditure, highlight how much you need to save, highlight what growth rates are required and and create a long-term plan to ensure you meet your needs in retirement.

    Get in touch

    With a complex array of pension legislation and products available, it is more important than ever to seek professional and independent advice to ensure you are making the right decisions for your future. Contact our wealth management team (01254 679131 / wealthmanagement@pmm.co.uk) who will happily arrange a meeting at no cost to help you achieve more from your pension and long term financial plans.

     

    • Analysis by Rest Less based on Office of National Statistics figures