Assurances have been made that the State Pension age is ‘unlikely’ to rise to 68 years-old but the ongoing speculation does bring into focus the need to have a clear understanding of the issues and to plan for retirement.
The current age is 66 and the Work and Pensions Secretary recently said in parliament it was unlikely to increase until around 2040, though he has also delayed a definitive decision until after the next General Election. Which of course means little due to the short term nature of politics.
We have talked about pensions multiple times, of course, but it is never too early to plan for your retirement and it is desirable to have a clear vision of your goals and preferred outcomes.
Seeking expert advice really is the place to start, because although you may feel you are sufficiently knowledgeable and have carried out copious internet research, it is practically guaranteed that your financial adviser will be able to suggest things you hadn’t thought of or impart information you didn’t know.
Consider: Do you have a plan for your retirement? Are your investments and pensions working as hard as possible for you? Are you planning effectively for the best possible retirement, however you may prefer that to look? What kind of legacy (if any) do you wish to leave for family or dependants?
From the level of risk appetite to the voluntary contributions you can afford to make and the timing, this will all impact the final provision and you can never start too soon!
What seemed exactly right five years ago may no longer be the case and there’s always the chance your pension could be performing better and working harder for you.
Decisions you make today can also have profound effects on your legacy and the estate you leave when you pass away and the tax liabilities that become payable – and if you haven’t until now considered the vision for your financial future, perhaps now is the time to begin having that discussion with your nearest and dearest.
Also remember that financial planning for your retirement, whether pensions, investment or a combination, will usually involve a longer-term view and it is best not to react needlessly to short term fluctuations – or indeed soundbites from politicians!
To establish the best approach for you, seek professional financial advice so that you can plan your retirement with the luxury of time to make the best long-term choices you can.
We shall be very happy to offer you guidance on your options. More information and guidance about pensions is available from Pension Wise, an impartial service backed by the Government. Go to www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise.
