How your people can plan for a confident retirement to live the lifestyle they want
Retirement might seem a long way off but the later you leave planning for it, the less chance you have of achieving the retirement you want. We all dream of how we’ll spend our retirement but that dream looks different for everyone.
Some people want to spend more time with their family, while others want to enjoy long holidays and see the world, or simply wish to be financially independent. No matter what your dreams are, they rely on having sufficient pension savings to achieve them and live comfortably.
SPECIFIC RETIREMENT GOALS
People who associate confidence with retirement are most likely to have specific retirement goals and know what steps they need to take to reach them. But sadly, some people don’t feel confident that they will have enough savings to live comfortably after they retire.
Many people have a fear of outliving their money, but most don’t have a clear idea of how much money they need during retirement. It’s important to remember that retirement doesn’t happen at a certain age, it happens when you have enough money to live on. And having this clear direction and understanding will give the peace of mind that they’re on the right track.
ARE YOUR PEOPLE CONFIDENT ABOUT THEIR RETIREMENT?
Pensions can seem complex and overwhelming, and there are many reasons why someone might lack confidence in their retirement plans.
You might be worried that you’re not saving enough, but don’t feel you can afford to save more.
You might feel ready to retire now, but you’re not sure if you can rely on your current pension savings to provide enough money for the rest of your life.
You might have experienced a change to your financial situation, including life events such as divorce, and have new concerns about whether you can save enough.
You might have previously felt confident about your retirement plan, but the COVID-19 pandemic has derailed your savings.
Financial education and advice from an adviser is key to helping your people understand the current climate and help alleviate any stress related to retirement planning, helping to improve financial wellbeing.
DON’T SUFFER A ‘HORRIBLE SHOCK’
Research shows that there is a significant difference in how confident people feel about retirement based on whether or not they have spoken to a financial adviser. 65% of UK adults who have obtained financial advice say they do feel confident that they will have saved enough for retirement, compared to only 41% of those who have not[1]. A positive retirement experience begins with a plan designed to help someone live life on their terms.
An adviser will ask questions about finances, personal circumstances and retirement goals, and create a plan that’s unique to you and will help you reach the retirement you’re aiming for.
PROVIDING ANSWERS TO YOUR PLANNING QUESTIONS
People who know where they’re going and how to get there feel more confident in their retirement plan. It’s important for your people to have expert advice on these key points:
What do I need to know?
How much you need to save for retirement
How to save tax-efficiently for retirement
How pensions work
The type of pension you should choose
The right amount to contribute to your pension.
How to boost your pension pot
How your pension should be invested
How to withdraw money from your pension
Source data: [1] https://www.lv.com/about-us/press/consulting-a-financial-adviser-is-key-to-feeling- confident-about-retirement
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE BASED ON
YOUR INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION AND REGULATION WHICH ARE SUBJECT TO CHANGE IN THE FUTURE. YOU SHOULD SEEK ADVICE TO UNDERSTAND YOUR OPTIONS AT RETIREMENT.
Give your people get peace of mind that they’re on the right track.
When the future is unclear, the thought of retirement may well feel more daunting than exciting. We’re here to advise members on how to build the wealth they need to achieve the retirement they deserve. Find out how we can help you and your members.
