Planning for retirement is something that is best started early. Defined contribution pensions, now the main savings tool for many planning their retirement, depends on 4 things for a more financially secure retirement:
- The longer you save - so the earlier you start the better
- The more you save - so you should save as much as you can afford and review whether you can increase this or make one off payments such as from bonuses or share scheme maturities
- How your pension fund is invested - you should regularly review where your pension is invested to ensure it is in line with your circumstances, needs and attitude to risk
- When you start taking your pension - the less time your pension has to fund in retirement will generally mean the higher your potential retirement income.
To help plan for retirement it is a good idea to use a pension saving modeller regularly and check the difference that say delaying retirement for a couple of years, or saving an extra £10 per month will make to your retirement plans.
Have a look at our easy to use modeller here
Please be aware, the value of investments can fall as well as rise; past performance is not a reliable indicator of future results and you could get back less than invested.
The latest instalment of HSBC’s report into the future of retirement states that lack of savings, debt and healthcare are among a host of concerns shared by many approaching later life. The headline statistic from the report entitled: The Future of Retirement Healthy New Beginnings, which features the views of more than 18,000 people in 17 countries, is that three quarters of people aged 45 and over would like to retire in the next five years, but almost half – 45 per cent – of those cannot fulfil this aim because their circumstances do not permit it.