Research into workplace pensions has found that the amount the average employee is willing to save towards retirement has dropped by almost a quarter over the last year. The news has prompted suggestions that despite the gradual introduction of auto-enrolment, employees are still removed from the reality of retirement.
The stark reality is that it is now more important than ever to lay carefully made plans for the future. With life expectancy on the rise, some people could be living in retirement for 20-30 years. Being able to survive comfortably for such a long time means carefully planning and preparing as soon as possible.
The state pension currently stands at £110.15 a week, which should act as motivation to start saving as soon as possible. When it comes to retirement strategies it is all in the planning.
Planning your retirement strategy
Hopefully you are already contributing towards your retirement fund, but whether you are or not the following factors should be considered and reviewed every year.
- If you are employed – is there a company pension you can join?
- If you are self-employed what is the best pension option for you?
- How old are you?
- How much can you afford to save?
- How much state pension will you receive?
In terms of how much income you will need in retirement you can estimate your post-retirement living expenses at roughly 60-80 per cent of your current living costs. It is also worth considering expenses such as cars, holidays, hobbies and grandchildren.
With all of the above in mind, you can start to plan and review your retirement strategy. Are you on track? Are you saving enough?
Contact us today to find out how we can help you to secure the retirement income you want.