For many Yorkshire residents, planning for retirement can be a daunting task. Our financial advisers generally hear the same old questions: “when should I start planning for retirement?”, “what type of pension scheme should I be looking to join?” and “how much do I need to save to have a happy retirement?”.
Unfortunately, there is no one answer to these questions – every person has different incomes, requirements and assets. That is why contacting a qualified Chartered Financial Adviser is so important when planning for retirement to ensure that you are making the most of your money.
So, how much do you need to save and when should you start?
The amount you save into your personal pension will all depend on what you can afford. It’s for that reason that Heritage’s financial planners always recommend that our Yorkshire clients start planning for retirement as soon as they start their career.
If you start putting cash into a pension scheme in your twenties and can afford to put away 10-12% of your salary per year, for example, then this greatly increases the likelihood of you living comfortably in later life. If, on the other hand, you leave your retirement planning until around the age forty to fifty, you could find yourself putting in more than 20% of your wage to meet the desired amount.
Surprisingly, recent research indicates that people aged between thirty five and sixty think they need at least £23,469 saved for retirement. This is without doubt doable – particularly if you have an accurate financial plan in place to help you reach that target. Our advisers always ask Yorkshire clients to bear in mind that people in retirement will also receive state pensions, and their outgoings will be considerably smaller as mortgages are generally paid off by that age. Children have often flocked the nest too, therefore such a high amount may not be necessary.
You will additionally need to consider in your retirement financial plan that your employer may contribute a percentage to a pension scheme for you, and all pension contributions receive income tax relief. What’s more, when planning for retirement, you don’t always have to stick to a pension: you could even invest sums of money into an investment ISA, or even purchase property or invest in businesses.
If you are a Yorkshire resident in the Leeds, Wakefield or Huddersfield areas that is looking to speak to Chartered Financial Advisers to help with pensions and planning for retirement, please do not hesitate to contact our Morley-based team on 0113 350 2080 for more information.