Retirement may seem a long way off, but are you saving enough now for a comfortable retirement in the future?
With the state pension and some private pensions falling short in terms of what they provide in retirement, can you rely on these alone to provide sufficient income?
It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future.
Our independent financial advisers can help you devise the correct investment and saving strategy to allow you to enjoy the lifestyle you want when you retire.
You’ll be surprised at the big difference it can make to your savings if you start saving early. This is because of ‘compounding’.
Compounding is a simple concept. When you invest money you earn interest or income on your capital. Then next year you earn on both your original capital and the interest from the first year, and so on.
It’s the snowball effect – as your capital ‘rolls down the hill’ it becomes bigger and bigger. The earlier you start investing, the more time you have for compounding to take effect.
The closer you get to retirement, the greater the need to preserve your savings and ensure they will last all through your retirement.
This is also a time to consider what changes you may need to make to your investments as you approach the end of your working life.
People are living longer, so you’ll need to make sure your money lasts as long as you do. It’s also crucial to make the right investment decisions now to ensure that over time your money will keep pace with the threat of rising inflation.
Do you know the answers to these questions:
If you can't answer some of these, our advisers can help you get to grips with your pension plans and devise a strategy to make your money work as hard for you as possible.
If you would like to speak to one of our advisers about planning for your retirement, click here.
A pension is a long-term investment. The fund value may fluctuate and can go down as well as up. You may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. This is for your general information and use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice.
Many thanks to Alan Davidson for all his hard work on my pension, much appreciated. I will be recommending him to my friends and family.
L. Cumming, pension client
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