Investing For Tomorrow – Put plans in place this Pension Awareness Day

It is Pension Awareness Day on 15th September 2017. It might not sound like the most exciting day of the year, but it does help to raise awareness about the importance of putting provisions in place to protect your finances.

Thinking about pensions sooner rather than later is the real difference between a comfortable retirement and just making ends meet.

One of the most critical aspects of retirement planning is how you structure your financial affairs to make sure you have sufficient money, if and when, you stop working.

Pension Awareness Day is a day designed to encourage people to plan for their future and secure the future of their families. The earlier you start thinking about this the sooner you can relax and the bigger the pension pot you have to enjoy.

Under the Government’s auto-enrolment scheme, employees over 22 years old, earning more than £10,000, will be automatically opted into a company pension scheme. Both you and your employer must contribute to your pension, and while there is a minimum amount you must pay in, it is a good idea to try to pay in as much as you can afford.

The good news is that under current rules, one of the big advantages of making pension contributions is that they will benefit from tax relief.

Surprisingly, many people spend more time planning their annual summer holiday than their own retirement. Not knowing where to start could be a contributing factor – but planning for the future, does not need to be complicated. In fact, it can be broken down into three simple steps:

Step one:

Know what you need and set yourself a target.

The closer you are to retirement, the more likely you are to know how much income you will need to cover your outgoings. If you have longer to go until retirement, it is still good to have an idea of what you are aiming for – and you can review this each year as you get closer.

Step two:

Have an understanding of what you already have.

The second step is simple – understanding what you have already saved. Knowing what you already have will help you to understand how far you are towards your retirement target. If you have a lot of different pensions, it may be worth considering bringing those all together into one account if appropriate.

Step three:

Take action.

  • Are you paying in the right amount?
  • Are you invested in the right kind of fund?
  • When can you realistically retire?

Don’t put off planning for retirement. By following these simple steps and reviewing your retirement plan at least once a year you are planning for a better future.

If confusion and a lack of understanding around your retirement needs, has led you to put off planning and saving anything, you’re not alone. In fact, over half of people in the UK are in the same position.

If you would like to take your future into your own hands and plan for a happy retirement, book a free discovery meeting with the Investing For Tomorrow team today.