For many people, retirement can seem like such a long way away, but it’s important that you plan early in order to enjoy a comfortable and smooth transition. Whatever your age, there’s a plan for you, and we have listed the key points in each milestone of your life, to measure if you are you on track for a comfortable retirement.
IN YOUR 20’s
• Focus on clearing your debts.
• But make sure you open an ISA.
• Then save what you afford.
In your twenties you probably have your first proper job with a proper salary. But retirement will seem a long way off. At this stage, it’s reasonable to allow other financial objectives to take priority.
IN YOUR 30’s
• Reassess your debts and outgoings.
• Join your company pension scheme as soon as possible.
• Think long-term with your investments.
Your 30’s can be a busy decade from a financial perspective. All of us face new challenges, with the costs to go with them. You may be getting married, starting a family or buying your first house.
IN YOUR 40’s
• If you haven’t started saving, do something about it!
• Keep building your ISA.
• Your earnings should be peaking – dedicate more to a pension.
Ideally, by the time you reach your 40’s you’ll already have built up some retirement savings, whether in the form of ISA’s or a company or personal pension scheme.
But if you haven’t already started, it’s not too late. It will just require more effort. This is a crucial time for your retirement planning, and it’s imperative that you act now.
IN YOUR 50’s
• Maximise your contributions.
• Remove risk from your pension investment plans.
• Review the pension contracts that you have.
This decade is perhaps the most important of all when it comes to retirement planning. Firstly, do you have a retirement date in mind? It might not be definitive, but it should serve as a guide. Then calculate the sort of income you want.
IN YOUR 60’s
• Check that all your debts, including mortgage, are in order.
• Decide on whether you’ll buy an annuity immediately or take drawdown.
• Talk to an IFA before you take any action.
During this decade you will be making important decisions about how your pension fund produces cash and income in retirement.
These are lasting decisions that can have a major impact on your finances in later life.
Whatever stage of your life you are at it is important that you receive help and guidance along the way by seeking expert independent financial advice.
Please contact Sibbalds Financial Services on 01332 242257 or email us at email@example.com