Start Early

In your 40s and 50s retirement may seem so far away that you can think about it later. But start saving now, even if it’s with a moderate amount.

Consolidate pensions

Changing jobs may mean you have accumulated several pensions over your working life and having one consolidated pension pot to deal with for every aspect of your income when you retirement makes it simpler.

Maximise contributions

Your current pension contributions arrangements may not be sufficient to allow for a comfortable retirement and it nay be wise to make additional contributions when you can. This could be in form of a lump sump or increased monthly payments.

Maximise tax efficiency

A £100 contribution today typically costs you £80 if you live in the UK and are a basic-rate taxpayer, as little as £60 if you’re a higher-rate taxpayer and £55 if you pay additional-rate tax. Ensure that you are receiving the higher rate and additional tax benefit by completing and adding the pension contribution information to your tax returns.

Consider your attitude to risk

It’s important that your pensions are performing to give you the income in retirement you expect. Investing in line with a risk tolerance you feel comfortable with could result in increased performance.

How does retirement look for you?

Whilst it may feel like you’re wishing your life away it is worth giving some serious consideration as to when you’d like to retire and what income you’ll need. Draw up a realistic budget using your current spending habits as a guide.

Our handy cash flow modelling tool can help with this, highlighting any shortfalls that need to be considered.

Not just about pensions

If you have money in other assets such as ISAs, unit trusts or other investment accounts, such as investment bonds, there could be tax benefits in incorporating these into your retirement income structure.