Having worked hard your whole life, retirement is a time where finances should be the least of your worries, and as such, is why retirement planning is an essential and necessary step to take to ensure you can comfortably live out your golden years.

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When you approach retirement, it’s easy to worry that you’ve not saved up enough money to meet your retirement goals. However, by seeking the guidance of a financial adviser, you’ll not only be able to create a tailored retirement plan, but you’ll also be able to utilise different methods of withdrawing your retirement income in the most beneficial and tax-efficient ways.

To help you get started with your retirement plan, there are three main questions that you should ask yourself:

1. 1. 1. How much money do I need to fund my retirement?
      2. What size pension do I have?
      3. What other types of savings and investments do I have?

How much money do you need to fund your retirement?

No matter how hard you try, you can’t predict what life will throw your way, and as such, it’s hard to precisely calculate just how much money you’re going to need to fund your retirement. 

However, by creating a rough figure, you’ll be able to shape your retirement plans in the best way that you can!

There are several factors to consider that will determine the amount of money you may need in later life, and it can range from things such as whether you’re going to continue to work part-time (meaning you might not need to withdraw as much income in early retirement) or if you’re wanting to travel, make home renovations or even undertake a new hobby.

By sitting down with a financial adviser, you’ll be able to work out how much money you’ll need to achieve your retirement aims and they’ll also be able to suggest appropriate retirement strategies that will benefit you the most.

What size pension do you have?

As you approach retirement, you should look into all your pensions, and assess how much money you have accumulated for retirement throughout your working life. This could be through several workplace pensions, but also through any personal pension plans that you may have.

It’s easy to feel overwhelmed while doing this, but by talking to a financial adviser, you’ll be able to successfully understand and calculate the total value of your pensions, and be advised on what steps you should take.

This is such an important step to follow as it will greatly help to determine which retirement strategies you should follow in order to manage and make the most of your money, but also help you to make important retirement decisions.

What other savings or investments do you have?

Pensions aren’t the only way that you can derive an income in retirement. In fact, there are many other sources such as ISAs, shares, and through property. 

You should consider all your assets when wanting to plan for retirement, and from there you’ll be able to make some of the best and most informed decisions.

To discuss your options and what the necessary steps to take with the assets you have for retirement are, you should consider consulting a financial adviser who will take into consideration your retirement goals and guide you through making choices that benefit you.

Things to take away

Due to the unpredictability of life and factors outside of your control, it can be difficult to know just how much money will be needed to fund your retirement comfortably, and as such, knowing how best to withdraw income isn’t as straightforward as you may think and is why seeking qualified advice can be essential.

By talking to a financial adviser, you’ll be able to get advice that takes into consideration your individual needs and circumstances and create a retirement plan which utilises the best financial strategies for you that’ll take the stress out of your retirement finances.

To get started with an experienced financial adviser today, why not contact our friendly team?

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.

Disclaimer – This article and the information it contains are correct and accurate to the best of our knowledge. However, it is not a recommendation to pursue certain strategies or a guide to follow. The value of investments can both rise and fall, and you may not get back what you initially invested. Please consult a qualified and experienced financial adviser who will consider your personal circumstances and suggest relevant solutions.