Planning for retirement and the need for laterlife care are becoming the decade’s most talked-about areas of social policy. In the UK we are seeing a major shift in emphasis; financial provision for our retirement years is moving from being the responsibility of the state, to being the responsibility of the individual.
Increased life expectancy means that people retiring at 65 today can reasonably expect to live on into their 80s if not longer, and some can expect to live to 100. However, when it comes to planning for retirement people can underestimate the odds of reaching a great age, and may not be adequately prepared financially for the years ahead. This may be one of the reasons behind the recent increase in the number of those working beyond state retirement age.
Making the most of your pension savings
Unless you’re in a pension scheme that pays you an income based on your salary when you retire, you’re most likely to be saving into a scheme that provides you with a sum of money, your pension pot. How you turn your pension pot into income is one of the biggest financial decisions you have to take at retirement, and there are many pitfalls to avoid. Getting advice will give you the comfort of knowing that you’re doing the right thing with your money, and means that you will have in place a detailed plan that takes a holistic view of your finances.
What a good retirement plan looks like
There’s a lot to think about when making plans for a comfortable retirement. A good retirement plan needs to take account of factors such as inflation, investment risk and the potential need for funds for long-term care. With the increase in life expectancy, more of us can expect to need help and support at some time in our lives. Residential and nursing care costs can often be around £1,0001 a week.
Take the right steps
Taking professional advice about your pension has never been as important as it is today. Many of us struggle to find the time to plan our retirement finances properly, and it can be hard on your own to make informed decisions. Taking advice can give you peace of mind and help ensure you don’t run out of funds in later years.
1 LaingBuisson, 2017
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The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.