Posted on 14th February 2012
It may be a long way off, or it may be on the horizon, either way it should be a dream and not a nightmare!Here’s how to ensure a happy future:
The news is full of reports on the pensions gap – this is the difference between the funds available to provide for retired people and the amount of money they will need to live comfortably when they can no longer work or no longer wish to work.
The good news is that you can avoid falling into the gap by taking action NOW!
Firstly, review your disposable income; how much have you got left over and what are you doing with it?
Consider this: whatever you put into a pension scheme increases in value immediately by virtue of tax relief!
An £80 contribution immediately becomes £100 for a basic rate tax payer; it is even more advantageous for a higher rate tax payer. Where else can you get a rate of return like this?
“Ah”, you say, “but I might be old or even dead before I get my hands on it!” This is possible, but unlikely. Look around at what 55 year olds are doing.
You can start drawing your pension at 55 if you make the right arrangements.
Currently this can include up to 25% of your pension savings as a lump sum which is currently tax free. What would YOU do with a windfall?
“Well,” I hear you say, “I have much more pressing needs right now and I want to enjoy myself today!”
Of course you need adequate emergency funds and sufficient to fulfill immediate plans too. There is a balance to be had and that is why expert advice can be essential.
“What about changing needs?”
Yes, your needs and circumstances are likely to change, the advice process needs to include a review structure to make sure you stay on the right track and change course when necessary.
In summary, to know where you are and where you are going to end up are both worthy objectives; if only to let you know what action you need to take.
For peace of mind and confidence you should act now and make the most of what you have so that you can make the most of your life in future!
Taylor & Taylor Financial Services Ltd offer comprehensive financial planning services to enable you to make the right choices and make the most of your money, now and in retirement.
Please contact me if you would like to find out more.
Chris Taylor, Independent Financial Planner
Taylor & Taylor Financial Services Ltd