However, before you start counting down the days, there are some plans you need to have in place to ensure a comfortable post-working life.
Read on to discover our five top tips for planning your retirement.
Planning your retirement age
Do you plan to retire at national retirement age, or do you want to stop work sooner with the help of a private pension pot? Deciding the age at which you retire should be your first port of call, so you can figure out exactly how much you’ll need in your pension pot.
Read our article to see how much you need in your pension pot to live the retirement lifestyle you envisage.
Dealing with debt
From student loans to credit card debt and mortgages, any outstanding payments eat away into your overall retirement income. Before you set an age to retire, you’ll need to calculate your debt and how long it will take to clear it. You may be able to pay down most of your debt before you retire with careful financial planning and management. Clearing your debt means you can enjoy your twilight years debt and worry free.
Income tax
Check in with HMRC before you retire. During your working life, tax is collected from your pay-checks using tax codes. However, these codes are quite broad and don’t take into account different circumstances that affect your income. For example, you might have gaps in your working life, you might work two jobs, or make voluntary payments into additional pensions.
When you are given your tax codes each year, be sure to check the information is correct and that you’re paying tax at the right rate.
Make a will
As part of your pension plan, make sure you have an up to date will that explains how you’d like your estate to be dealt with after your death. This should include all of your assets, and any money left over from your pension.
Get Financial Advice
Seek expert financial advice before you retire. An advisor can help you find the most tax efficient ways to take money out of your pensions or assets, as well as formulating a plan to pay off any outstanding debts.
Our financial advisors have been helping clients prepare for retirement for over 50 years, give us a call today to see how we can help you.
