Planning for your pension: five simple hacks to help you

None of us want to think about getting older, but planning for your retirement is one of the most important things you can do. The longer you leave it, the harder it’ll be to save enough to live off comfortably. By putting a small amount aside each month, your future self will be able to enjoy a more relaxed and carefree retirement. Here are some hacks to help you…

Do your sums

It’s so easy to put your pension to the back of your mind, but having a frank sit down and look over your numbers can offer clarity. Work out exactly how much is already in your pension pot and estimate what you’ll enjoy each month once you reach retirement age – it’ll help you decide whether you need to up your contributions, make investments, or sit back and relax, knowing you’re covered and you’ve got enough to fulfill your retirement goals.

It’s never too late to get started

It might seem like a lifetime away, but planning for your retirement today will serve you well. If you’re young and still in the early days of your career, getting into the habit of saving for your retirement now will put you on the best possible path. But don’t think you’re too old to get started – even if you’re in your 40s, 50s, or 60s, you can still start or add to a pension.

Speak to an advisor

Let’s face it: retirement planning is both boring and complicated. Speak to an advisor who can review your current financial position and put you on the right track. We recommend that you seek out an independent advisor who will only refer you to products and services that are in your best interest. If you’re living overseas, don’t worry: there are lots of experts that are specialized in helping foreign nationals – it’s entirely possible to start a pension in Dubai, for example, so don’t delay and get started on a pension plan as soon as you possibly can.

Put more away

It might be easier said than done, but finding ways to put more money into your pension pot is always a good idea. If you score a pay rise, for example, you could put the difference into your pension. If you win the lottery or sell your business, set aside a percentage to add to your pension pot. The more you put in now, the more you’ll have to enjoy in the future.

Look at the tax benefits

Finally, don’t forget that most pension contributions are tax-deductible and could work out in your favor. If you run a limited company, for example, you could contribute up to £40,000 per year into a pension scheme and cut your Corporation Tax contributions as a result. Speak to your financial advisers – they might advise on a pension scheme that works for your needs.

Are you feeling confident about your pension and retirement? Let us know and check back.