3 Things to Avoid as You Approach Your Retirement
If your retirement is approaching and you have not yet prepared, now is the time to act quickly to receive the retirement you deserve. When it comes to retirement there are many things to consider such as how you will use your pension pots, the value of your pensions, and how to boost your investment funds. There is a lot of information and advice on pension schemes and plans and all the things you should do. However, a lot of advice does not tell you the do-nots and the things to avoid when approaching your retirement. In this blog post, we will discuss three things to steer clear of.
Not having a retirement plan
As stated by Benjamin Franklin “if you fail to plan, you are planning to fail”. Having no retirement plan is one mistake you should never make as it prevents you from achieving your financial goals which can lead to you not being able to live your dream retirement. As you reach retirement, there are several things to complete, so planning ahead will save you from a lot of stress and ensure your finances are in check while you prepare yourself for your retirement. The checklist of things to do may include:
Working out what money will be coming in and how to budget your pension so that you don’t run out;
If you are currently on benefits, contact the benefit provider to let them know you will be retiring. The amount you receive could change or you may need to claim a different benefit;
Get in touch with your pension providers to let them know you are approaching retirement;
Get a quote for your state pension;
What you would like to do with your pension pots when you die;
If you have a mortgage work out how much you need to pay;
If you have a personal pension, know your pension options.
We are fully aware that this list can be challenging to complete especially doing it all yourself. Therefore, our experienced financial adviser can help you work out all your finances while helping you reach your financial goals quickly with less risk. We analyse your situation with our expertise and ensure that you are in the right direction financially, helping you understand each pension option so that you can choose the one that best suits you. Your financial circumstances will be our main focus and as independent financial advisers who are not tied down with products, we will always have your best interests in mind.
Underestimating the cost of your retirement
The cost of living is rising in Britain. This means it is very easy for people to underestimate the cost of their retirement. A recent survey conducted by Schroders shows that people are not factoring in their income against the cost of living. This means those who are not retired yet or are approaching retirement will expect to see an increase in their living costs which will take up a significant amount of their retirement income.
Therefore, it is very important for people to avoid underestimating the cost of their retirement and to start making realistic goals as it could lead to running out of their retirement money. Leaving this too late could lead to a later retirement date which isn’t ideal.
As trained professionals in the financial field, we will help you budget your costs so that you will never run out of funds and meet your expected retirement needs.
Not maximising your investments
If you are investing for your retirement, leaving it and forgetting about it is not the best option. For example, if you are looking to buy an annuity (a product that guarantees income for the rest of your retirement life) then it may lower the investment risk, but this means the money will be set and you are unable to get more. Therefore, some people may opt for the drawdown option as it gives them the opportunity to grow their pension pot. However, if you have chosen the drawdown option, you will need to come up with a suitable strategy that will help grow your pension pot. This is because income will not always be guaranteed, and your pot could potentially decrease.
If you are looking to guarantee your income and maximise your investments, talking to our financial advisers will help you do just that. We will investigate your circumstances by doing substantial research and help create a strategy so that you no longer need to worry about your investments being in the wrong place or your finances being handled incorrectly. This will save you much needed time and money. Think of a financial adviser as an investment to help you reach your desired retirement with little risk. To top it off, we ensure that you pay the tax in the right areas to avoid hefty fines at a later date.