February 15, 2023
Are you feeling stressed with it comes to your later life plans? If so, you’re not alone, as more than three in five Britons report feeling stressed about later life planning right now.
It’s hardly surprising. It’s no exaggeration to say that we’ve been living in a state of constant crisis for nearly three years now. Two years of pandemic, rising living costs, increasing inflation and interest rates…not the threat of escalation of the war in Ukraine. 2022 actually saw the word ‘permacrisis’ declared Collins Dictionary ‘word of the year’.
It’s natural to feel stressed when so much feels as though it’s out of control. And it’s also completely normal to feel out of your depth when it comes to things like pensions and other preparations for your retirement and later life.
At Talis IFA, whilst we obviously aren’t sticking our heads in the sand when it comes to the world around us, we prefer not to panic. Whilst we monitor the financial world carefully, we avoid knee-jerk reactions, and keep our sights on the long term.
So we’re here to help you work out what you need for your future. We’ll look together into the financial world, assess your current situation and help you to put plans in place to work towards financial freedom when you retire.
It’s never too late, or too early to start planning. While 61% of people feel stressed when they think about their retirement, this figure rises to almost three-quarters (74%) of 25–34-year-olds [1].
All age groups, with the exception of the over-55s, admit to being stressed about: whether or not they will have enough money set aside at retirement to do all the things they want to do (71%); how long their pension pot will last (65%); whether or not they are paying enough into their pension pot (59%); and how early they need to start paying into a pension (49%).
Because we take a long-term view, here at Talis, we’re confident that it is possible to take control of your savings and understand whether you are on track for the lifestyle you want in retirement.
Ideally, aim to start saving for your retirement at least 40 years before you want to retire. The later you leave it, the more you will need to save each month to reach your target.
Try to save at least 12.5% of your salary towards your pension every month – this may seem challenging at the moment but it gives you something to aim for. Remember, too that this amount can include money from you, your employer and the government.
Aim to amass a pension pot of at least ten times your salary by the time you retire.
Take advantage of the tax relief offered by the government to boost your savings. When saving into a pension, for every £8 you save, the taxman adds an extra £2.
Every employer in the UK must provide eligible employees with a workplace pension. Not only that, but they must contribute to this pension. Some employers will contribute more if you save more, helping towards the 12.5% target.
Saving for your retirement should not be a ‘set and forget’ activity. Use your annual pension statement to check if you are on track for your retirement target.
If you’d like some expert advice on financial later life planning, our independent financial advisers will be happy to talk to you. Whatever age you are, we’ll look at where your finances are currently, the lifestyle you want to have when you retire, and how close you are to achieving your financial goals. Contact us here.
[1] Research was conducted by Censuswide between 06.10.22 – 10.10.22 from 2,001 general consumers, national representative sample. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.
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