Many people reach their 50s before they look closely at their retirement plans. By then they may have several pensions, a mix of savings and investments and only a hazy idea of whether it adds up to the retirement they want. Starting earlier gives your pension and investments longer to potentially grow and may give you more flexibility later in life. This guide explains why timing matters, how to make a start and what to keep in mind along the way.
Why does starting early matter?
Successful retirement planning starts with understanding what matters most to you. Time is one of the few advantages that can’t be recovered later and starting early may help in several ways:
- More time for investments to potentially grow. The longer your money is invested, the more time it has to benefit from any growth, though growth is never guaranteed.
- Greater opportunity to benefit from compounding. Returns can generate further returns over time and the effect tends to build the longer you stay invested.
- Less pressure to make larger contributions later. Saving steadily over a long period can feel more manageable than trying to catch up in the final years before retirement.
- More flexibility and retirement options. A well-funded pension may give you more choice over when you stop work, how you draw an income and how you spend your retirement.
How to get started
You don’t need to have everything worked out. A few practical steps will give you a clearer picture of where you stand:
- Consider your retirement goals. Think about when you’d like to retire, the lifestyle you want and what you’ll need to fund it.
- Gather details of your pensions, savings and investments. Many people have several pensions from past employers, so it’s worth getting everything in one place.
- Identify any potential retirement gap. Compare what you’re on course to have with what you’re likely to need.
- Review your investments and contribution levels. Check that how your money is invested, and how much you’re paying in, still fits your goals and your attitude to risk.
Why work with Tees Financial Limited?
A regulated financial adviser can help you turn these steps into a plan that fits your circumstances. At Tees Financial, we can provide:
- personalised financial planning built around your goals rather than a one-size-fits-all approach
- pension planning expertise to help you make sense of your existing arrangements and how to use them
- tax-efficient planning considerations to help you make the most of the reliefs and allowances available
- ongoing support and regular reviews so your plan keeps pace with changes in your life and in the markets
- support during key life events, such as changing jobs, a change in family circumstances or approaching retirement
Take the first step today
You don’t have to make big decisions straight away. Small steps are a good place to begin:
- check a pension statement
- review your contribution levels
- gather details of any existing pensions
- consider your retirement objectives
- speak to a regulated financial adviser
This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Past performance is not a reliable indicator of future returns and all investments involve risks including the risk of possible loss of capital. Some information quoted was obtained from external sources we consider to be reliable.
Tees is a trading name of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered number 211314.
Tees Financial Limited is registered in England and Wales. Registered number 4342506.
