Planning your retirement is essential, no matter your age – but how can it be done in the most effective way possible?
The key to successfully planning your retirement is to seek a modern wealth management service for advice and guidance on your approach.
- Discuss your finances with your adviser
You can discuss every aspect of your finances with your modern wealth manager, to help you devise the right approach to your retirement, suited to you and your individual needs.
Your adviser can conduct a full assessment of your income, as well as understand different things such as your financial dependants, outgoings, and much more.
They will also be able to discuss any concerns or challenges you may be facing in regards to your wealth, and growing it effectively for retirement.
This will help you build and tailor a firm foundation on which you and your adviser can build the right retirement plan for your circumstance.
- Implement your goals into a financial plan
Once your adviser has a clear understanding of your finances, they can help you devise a comprehensive financial plan for your retirement.
This plan will incorporate each of your financial goals for retirement, both short and long-term, allowing you to implement the right steps for achieving them.
There are several goals you might want to include in your retirement plan, including things such as:
- Having a certain amount in your pension pot for when you retire
- Retiring at your preferred age
- Living a particular type of lifestyle in retirement
- Having your assets allocated effectively for when you retire
Your adviser can help you choose the right goals that are well-aligned with your circumstance and are beneficial to growing your wealth effectively.
Once these goals are in place, your wealth manager can then help you devise the right steps for meeting these goals, whilst also taking into account your financial capabilities and how realistically you can meet them.
- Optimise the structure of your contributions
A core aspect of implementing your retirement plan is optimising your pension contributions, and this can be best achieved with an adviser’s guidance.
Your adviser can help you make the right contributions at the best times that suit your circumstance and the goals you have in place.
Your adviser will be experienced in handling the annual pension allowance, which as of the current tax year 2023/2024, is £60,000. You can also receive guidance on how the abolishment of the lifetime allowance might affect you and your wealth.
This will allow your adviser to give you the best structure for your contributions, that shelters as much of your money from tax as possible.
- Consider ongoing advice with your wealth manager
Another key aspect of a successful retirement plan is receiving ongoing financial advice from your wealth manager.
Whilst an initial financial plan is important, as you execute your plan there are various factors which can potentially impact your finances, and thus, the effectiveness of your plan.
This can include things such as changes in tax rates, changes in your income, market movements, additional financial dependants, and much more.
With ongoing advice, your expert can help you successfully navigate these impacts and remain on track to achieve your financial goals as efficiently as possible.
