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Pension planning TODAY can protect you tomorrow

Senior couple embracing on beach, rear view

It’s easy to think that if you have a pension, you can forget all about it until it’s time to retire.

However, regular reviews with Clayton Holmes Naisbitt could help you enjoy a more financially comfortable lifestyle in retirement. Don’t make these costly mistakes…

Being over-optimistic about your state pension:

Although the basic state pension has risen to £155.65*, not everyone will receive the full amount as it depends on your contribution record. In reality, it will never represent more than a safety net. Getting a pension forecast from gov.uk will show you what you’re likely to receive.

Not joining an employer scheme:

If you can join a workplace pension scheme, you should jump at the chance. By 2018, all UK companies will have to offer one and will contribute to it on your behalf provided that you don’t opt out of making your own contributions. As with your state pension, you need to keep an eye on the amount of benefits you’ll receive.

Not reviewing your plans regularly:

The longer you delay, the more expensive it becomes to build up a reasonable pension. It really pays to review your contributions regularly to help ensure you’re saving as much as you can comfortably afford and that your pension pot is invested in a diversified spread of funds. The earlier you save, the more opportunity there is for your pension to grow, and of course there’s the added incentive of valuable tax relief.

Thinking you can work forever:

While you might want to do this, it might not be a realistic prospect. We all age at different speeds and as you approach retirement age you might not feel up to carrying on, and the opportunity to do so might not be open to you, so don’t bank on this happening.

Making your property your pension fund:

Relying on your home to fund your retirement is a risky strategy. It could mean downsizing to release cash and you might find it difficult to sell in a downturn. Plus, you’ve got the expense of finding alternative accommodation.

Need further advice? Fill in our contact form or call us on 0113 3878240

 

*Correct at time of publication

Clayton Holmes Naisbitt