4 points you must consider before retirement

It‘s not easy to know when and how you’ll retire. A recent study shows only 1 in 3 of us have a clear understanding of our retirement options. While only 1 in 3 of us are confident we will be able to afford to retire. To gain more clarity we have put together 4 points you must consider before retirement.

#1 When to retire

If you have decided what age you would like to retire the next step is to understand how much capital you will need to accumulate to support you in retirement. Remember, you can normally access your pension from age 55 (age 57 from 2028).

Our Wealth Calculator can give you a helping hand to check how much your pension could be worth at the age you want to retire.

By engaging with an Independent Financial Adviser you will gain an individual insight in to how you achieve your retirement. It’s not just the figures, it’s all about planning for the lifestyle you want and achieving those lifelong goals you have worked for.

#2 Knowing how much your retirement will cost

The cost-of-living crisis is causing great concern for those over 50. 53% fear they won’t have enough income to survive financially once they stop working.

By estimating how much you will spend in retirement, you will have more clarity and confidence identifying when you can afford to stop working.

Think about the things that matter to you and the lifestyle you would like to live. Then consider when you might like to visit those countries or buy that campervan. This should all be factored into your retirement costs.

Thinking about your future and planning your finances around the unknown can be very overwhelming. If you need reassurance you are making the right decisions for you and your family speak to an expert. We help clients every day who are looking for confidence, reassurance and support to put the wheels in motion to their retirement.

#3 Accessing your pension

Unless you have a defined benefit pension (i.e. a final salary pension scheme), there are three main ways to access your pension benefits.

  • Annuities – A tax-free cash lump sum of up to 25% and a guaranteed income (taxable) for the rest of your life.
  • Drawdown – Up to 25% as a tax-free lump sum, and then keep the rest invested. Take a flexible income (taxable) as and when you need it.
  • Lump sums – Withdraw your whole pension or keep some invested. Up to 25% of each withdrawal will usually be tax free and the rest taxable.

You can request your FREE Options at Retirement Guide by sending an email request to enquiries@innesreid.co.uk

Each of these have their own pros and cons, but you don’t have to settle on just one option. You can mix and match to get a balance between flexibility and security. And you can take part of your pension out at different times.

Keep in mind that tax rules change and any benefits will depend on your circumstances.

#4 Getting help with your retirement

Retirement is a significant moment in your life and important decisions need to be made by you well in advance. The crucial decisions you make now could impact how and when you retire.

If you are unsure about your retirement options an adviser can help you make sense of all your options.

We listen to your unique vision for retirement and build a bespoke road map for your finances. And we don’t stop there, we continue to review your plan so you can enjoy the money you worked hard for with confidence.

Ready to learn more? Contact our team for a personal consultation call 01244 347 583 to arrange a complimentary meeting with one of our Independent Financial Advisers. We have a whole team of experts ready to help you with your retirement planning


4 points you must consider before retirement – This article is not personal advice, if you would like more information about your own personal options for retirement and would like to gain confidence in your decisions get in touch.

Source Hargreaves and Lansdown

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