Ok it’s the famous song title from Simply Red but it’s a line that many of reiterate throughout our lives. What we don’t want to be doing is reiterating that during our retired years. Many of us daydream about what we’ll be doing in retirement. We dream of visiting far flung destinations, taking up our hobby, spending more time with our family and friends. But what if you haven’t planned how you will fund your retirement properly and money is really too tight to mention let alone do any of the things you hoped you’d be doing?
A poll carried out by pension provider MetLife, has looked at why people in the UK are so disillusioned with pensions. The findings reveal that 21 per cent of savers had cancelled pension contributions over the past two years because they needed the money to meet every day living costs.
With the cost of living becoming more expensive, wages not meeting the cost of living, many are having many financial pressures and it can be tempting to put saving towards a pension on hold to pay for every day necessities.
Being prepared for retirement involves thinking now about your future. It’s all very well and good putting it off for a rainy day. When that rainy day springs upon you and you haven’t enough income in your retirement you’ll be wishing that you’d made more of an effort to at least try and put something away.
Pension planning is crucial
Pension planning will be one of the most important things you have done in your life and will help you ascertain what retirement investments, as well as your pension, you will have. A pension planning strategy will also help you ensure that you review your current situation on a regular basis so that investments are always appropriate to meet your circumstances at any given time. Careful financial planning is crucial.
Starting sooner rather than later will give your contributions time to grow and could help you build the income you require to achieve the retirement you want. Delaying the start of your pension provision could also mean that you are missing out on valuable tax relief.
About: This article is for information only and does not constitute financial advice. If you have any questions relating to your own personal circumstances, are looking for retirement planning advice and would like to discuss your options of maximising your pension income in retirement then Bartholomew Hawkins can help you. We can be contacted on 029 2050 8000 or visit our website. The Financial Conduct Authority does not regulate tax advice.