There are many components involved in retirement planning, and this can lead to a vast number of questions from investors.
In light of this, we’ve put together this article to answer a few of the most frequently asked questions surrounding retirement planning.
So, when you’re ready, read on to find out more.
Who can help you with your retirement planning?
For many investors, retirement planning can be complex, and they often wonder if anyone can guide them through the process.
This is where modern wealth managers are of great benefit since they offer an expert service of guidance and management, for your entire approach.
Your adviser will take the time to learn every aspect of your financial situation, so they can begin developing the right recommendations to build your wealth effectively.
Not only will they analyse your income and spending, but they’ll also explore your financial goals with you and any challenges you might be facing.
These experienced professionals are one of the best ways to help you reach a successful outcome with your finances.
What investments can help you with retirement?
When it comes to growing your finances for retirement, there are a range of different investments you can make – including your pension and a variety of Individual Savings Accounts (ISAs).
Your pension allows you to save money each year for you to use when you retire. There’s an annual pension allowance of £60,000 – as of the tax year 2023/2024 – which means you can only contribute this amount each year that’s sheltered from tax.
As well as this, you can invest in ISAs – such as a cash or stocks and shares ISA. These are also tax-free accounts where you can grow your savings and withdraw your money without tax charges.
With a stocks and shares ISA, you can potentially profit from successful investments in securities, and any growth will not be subject to Capital Gains or income tax.
What should you include in your financial plan?
Financial planning can be a crucial process for your retirement approach. This is where you can outline all your financial goals and set the right steps to reach them.
Your goals could include a range of things, such as:
- Retiring at an early age
- Having a certain amount in your pension pot when you retire
- Supporting your financial dependents in retirement
- Allocating your assets more effectively for when you retire
Your adviser can help you establish the right goals that are both beneficial to building your wealth, whilst also aligning accurately with your financial circumstance.
With these clear goals in place, you can more efficiently implement the right steps to achieve them.
How can you transfer your personal pension?
With the right modern wealth management service, you can easily transfer your pension to your new provider.
You simply need to open a new pension with your wealth manager and fill out an online form to consolidate your existing pensions.
Your wealth managers can then contact your providers and get the funds transferred to your new account – some wealth managers won’t even charge a fee for this, but your old providers might.
This can then give you full visibility over your wealth for retirement, in one central platform.
Have we answered any crucial questions you had for your retirement planning? If you need further guidance, be sure to contact your modern wealth manager where you can start developing the right approach for you.
Please note, the value of your investments can go down as well as up.