Pension Planning

Financial planning is key to getting many things right in life, and the same applies to retirement and pensions. The sooner you start making arrangements to save for your retirement, the better it is. Even a small amount saved regularly will quickly build up to a decent pension pot for when you stop working.

Putting the right retirement planning in place is the best way to maximise your pension, be it a private or company scheme or a combination of the two. It is always as good idea to join your employers company pension scheme as they will not only contribute but the scheme is likely to have preferential charges and fees in comparison to a private pension. The best company scheme is a final salary pension based on how much you earn and how many years you have been with the firm, but these are fast disappearing.

Nowadays, the vast majority of companies have a money purchase scheme which is based on how much you and your employer put in and how well the investments do over the years. Several factors need to be taken into consideration. As well as giving due consideration to how much you believe you will need to live comfortably in retirement, it would help if you work out how much you can afford to put aside each month for the future. Then it would be best if you spent some time understanding the different saving options available to you.

For instance, did you realise you can transfer your pension from your old employer to a new one or into a private pension?However, if your pension comes with guarantees, you should generally hang on to it. Pensions are a complicated area, so you really need advice from an expert before transferring a pension or making a major decision about your retirement fund.

‍