Pensions

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Retirement planning

Most people think of a pension here but what is key, is the retirement plan itself. A pension is just a tool within that plan. This service is about working with what you have, where you want to get to and how best to use your resources for the biggest benefit to you.

I head from lots of people that they have ignored their pensions and shove the correspondence in a box, thinking that someone else is looking after the funds. The fact is that you are in charge of your plan, whether you want to be or not. You decide how much to put in, where it is invested and when you take retirement.
Maybe you have moved jobs a few times and have a collection of ‘frozen pensions’ following you? I take real issue with that term because it implies that the account is not doing anything and that probably isn’t true. There might not be more money going in, but the fund is probably still invested and potentially growing (or not).

Maybe you have built up cash in cash ISAs or own a couple of buy to let properties?

Key retirement questions to ask

The first key question you need to answer is when would you like to retire? This does not have to be state pension age. For some people, it is yesterday (if you could)! For others, they may enjoy work so much that they never want to stop.

The next key question you have to answer is how much income a month do you need to enjoy your life? That may be your current standard of living, it may be slightly different.

The third question is how much income do you need per month in order to survive?

Sadly, some people get to a point where they can no longer earn money and haven’t build up enough to be able to live the life they want. These questions help set your personal safety net.

Building a retirement plan

From these questions we can start to build a plan. What have you got currently, is it working well for you? What level of growth do you need per year to retire when you want? Is that feasible? If not, what we can we change? More contributions to boost the pot? More aggressive funds to try and improve the growth rate? Pushing your retirement age back? The least attractive option is to reduce your income expectations for retirement.

Why Rootes Wealth Management?