Retirement marks the start of a new stage of life, and while it may involve a certain amount of winding down, it’s also the chapter where you can live out some of your lifelong dreams.
For some, this may mean travelling the world or moving abroad, while for others, it could entail moving closer to family and spending more time with grandchildren. Whatever your goals may be, retirement can bring freedom, opportunities, and the chance to focus on what truly matters to you.
Whether that day is close or still years away, it’s worth checking in on your pension and wider retirement plans regularly. A financial planner can help you conduct a review to see whether you’re on track, and they can suggest small adjustments to make now that can make a big difference later.
Read on for six steps that can help ensure you achieve your retirement dreams.
1. Picture your dream retirement
Many people retire without having a clear idea of what they want the next phase of their life to look like, but before you can plan effectively, it’s important to know what you’re aiming for.
Think about the lifestyle you’d like and what you’d like to achieve. This might include:
- When you retire
- Where you live
- Big expenses, such as travel
- Helping your family with their finances or supporting causes you care about
- Pursuing hobbies.
A financial planner can work with you to find and set clear goals for these expenses. They can also help you factor in your day-to-day living costs, as well as other potential expenses, such as social care.
Additionally, a financial planner can model different scenarios that take into account varying inflation levels, investment growth, and your life expectancy.
Once you have a clear target to aim at, you will have a better understanding of what you need to do to get there.
2. Check your State Pension
The State Pension can form an important foundation for your retirement income.
To receive the full amount, you usually need 35 years of National Insurance contributions (NICs). If you have fewer than 10 years, you may not qualify at all.
You can check your record through the government’s online service and, if there are gaps, you may want to consider making voluntary contributions.
A financial planner can help you weigh up whether topping up your State Pension makes sense in your circumstances. They can also explore deferring it with you if you plan on working beyond State Pension Age.
3. Review your workplace and personal pensions
Your workplace or personal pension will likely be your main source of retirement income. So, it’s important to conduct regular reviews to see how much you’ve built up, whether you’re on target, and how your money is invested.
A financial planner can conduct a thorough pension review, assessing the value of your current pot and its growth potential in the context of your personal targets. This allows them to identify any shortfalls and create a plan for how to make up for them.
This could include boosting your contributions, adjusting your investment strategy, and evaluating your risk tolerance.
4. Consider other income streams
Your retirement plan doesn’t need to solely rely on your pensions. Indeed, spreading your income sources also helps protect you if one stream underperforms.
Alternative income sources might include:
- Investments
- Rental income from properties
- Cash savings from tax-efficient accounts, such as ISAs.
A financial planner can help you create a plan that balances your income streams and considers the tax implications and sustainability of each of them in relation to your wider goals.
5. Keep your plan under review
As your life changes, so too will your financial needs – and your plan should adapt accordingly. New family members, career changes, or health issues could all lead you to reevaluate your goals.
If you need to make adjustments and then realise you’re behind schedule, a financial planner can work with you to get back on track.
Even making small changes early on can provide a significant boost to your savings.
6. Build your plan and check your progress with a financial planner
A financial planner can help you every step of the way towards your retirement dreams.
They can ensure you clarify your retirement goals based on your priorities and principles. They can then work with you to build a plan that helps you reach your targets and can recommend course corrections to help you get back on track if you fall behind or your circumstances evolve.
Get in touch
Our team of independent financial advisers in Lewes is here to support you in achieving your dream retirement.
To find out more, please get in touch by emailing us at financial@barwells-wealth.co.uk or by phone on 01273 086 311.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
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