What to think about when reviewing your retirement plans
Why is it important to review your pension arrangements?
If you’re thinking, ‘But retirement is miles away’ or ‘I haven’t reviewed my pension for a while’ it may be time to consider your options. It’s never too early to start planning ahead or to review your existing pension arrangements. Reviewing the below elements could make a huge difference to what you will end up having in retirement:
- Performance: make sure your pension is performing well and is invested in the right mix of assets
- Charges: ensure that your pension contract is competitively priced, as the charges over the long-term can make an appreciable difference to the value of your funds
- Risk: this is one of the most important factors when it comes to investing your money for the future. The key is to find the right balance between the amount of risk you’re willing to take and the potential return you’re likely to get over your investment period
- Check your arrangements are on track: regular reviews will help you to understand how much your current pension will provide when you retire. This could allow you to retire earlier than planned, or create a strategy that lets you gradually work less
- Contributions: consider whether you’re maximising the amount that you can pay, and check whether it’s possible to carry forward any unused allowances, to make a significant contribution that could benefit from tax relief
- Death benefits: your pension should be structured to maximise the benefits available for your family
- Regulations: keep an eye on regulation changes within the pension industry, as they could affect your retirement planning.
Will you have enough money to retire on?
Use our pension planning calculator to find out if you’ll have enough money in retirement.
Calculate if you'll have enough money in retirement
Assumes an inflation rate of 1.5% p.a. and investment performance return of 5% p.a.
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We hope that your report provides motivation to keep building confidence in your financial future. We know it can be a daunting task so if you have any questions, please call one of our wealth planning experts.
To discuss your retirement plans, book a free consulation with a Canaccord Genuity Wealth Management specialist.
Found this interesting? Further reading:
- Will I run out of money? How does cash flow modelling work?
- How to boost your pension by making use of unused tax allowances
- Baroness Ros Altmann explores the future of retirement (video)
- Make the most of your retirement (PDF)
Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.
The tax treatment of all investments depends upon individual circumstances and the levels and basis of taxation may change in the future. Investors should discuss their financial arrangements with their own tax adviser before investing.
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IMPORTANT: Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.