If you are dreaming of retirement, spending some time getting your financial affairs in order is a good idea. This will help you to realise if you can afford to retire with a standard of living that you are used to or if making a few financial sacrifices will help you achieve your end goal.
These points will help with your planning.
Find out your worth.
You need to list your assets. These may be your home after the mortgage is repaid, Saving, Investment and Pensions. You may have a number of different types of pensions from different employers over the years. Now is the time to gather this information together.
How much will your state pension be?
Not only how much will it be but when are you likely to receive it. The state pension kicks in at different ages depending on your sex and when you were born. The amount you will receive is also dependent on your National Insurance payment history. To find out more this link will take you to the governments’ website for more information.
Consolidate your pensions to reduce cost (with care).
If you have had a number of employers over your working life you may have a number of separate pension funds. Consolidating these makes it easier to keep track of them. You may even save on fees as managing one large fund may be cheaper than managing several small ones.
You should always read the small print of these pension policies. Some policies may have guarantees built into them that you may not want to give up. Taking professional independent financial advice is import as mistakes can be costly and could seriously affect your personal financial wealth.
How much do you need to live on?
In retirement, your initial cost of living could go up. The chances are that you will want to travel and spend more time on your hobbies and interest. Being at home could see an increase in your heating and lighting costs.
I would recommend that you undertake some type of cash flow modelling. This will allow you to see what your finances will look like over a long period. You can build in such things as buying a holiday home, changing the car or downsizing to a smaller property. The scenarios are unlimited and it will help you understand what your financial future looks like. Most people live longer than they expect to, so keep this in mind when doing your financial planning.
Do not get scammed.
You have worked hard to build up this retirement fund so you do not want to lose it now. When taking financial advice it is important that you know who you are dealing with. Is the company registered with the Financial Conduct Authority (FCA)? Check the FCA’s “Scam Smart” website, which includes a warning list of companies operating without authorisation or running scams. Remember if it looks too good to believe the chances are it is.
How we can help you plan your retirement.
At Anstee & Co we are independent financial advisers (IFA’s). This means that we offer unbiased advice. We will look at all of the financial options. Some financial advisers only operate from a limited panel or only sell their own products and services.
We have offices located in-
Birmingham, West Midlands
London, Central London.
Our experienced independent financial planners also work from meeting rooms in Wellingborough, Towcester, Northampton, Bedford, Warwick, and Droitwich.
Meetings can also be arranged at your home and at a time that is convenient for you.
Why not take the first steps of planning your retirement today by arranging a free initial meeting.