What are the steps in retirement planning?

If you are looking ahead to a time when you’ve a life of leisure there are some well proven steps you can take to optimise your retirement plans.

Or maybe you are thinking about retiring in just a few years or are already in-retirement?

Whichever stage you’re at there are different priorities:

BUILDING WEALTH FOR THE FUTURE – MANY YEARS LEFT UNTIL RETIREMENT

If you are still working and building up your pension and savings there’s some important questions:

 – Are you receiving the maximum tax incentive possible from the Government?

– Are you using tax efficient savings such as ISAs properly?

– Are your pension funds being actively managed to your risk profile and aspirations?

JUST PRE-RETIREMENT – WHEN IS IT POSSIBLE, WILL YOU HAVE ENOUGH MONEY?

Knowing when it’s ok to retire with the confidence of never running out of money is a big decision

• To make a safe decision requires careful cashflow planning to project forward income required.
• As your income will be diminishing your savings, you’ll also need to know there is growth potential to offset this with your fund.
• That will depend on the construction of your pension portfolio at this critical time.

IN RETIREMENT – MAKING YOUR SAVINGS LAST

You’ve got this far, and your work is done. What money you have has to last your lifetime.
And we don’t want you having to make your way back to work again! So what will give you comfort?

– Getting the portfolio of funds aligned to your risk profile and in a diverse set of funds is the first priority.

– Then a cashflow plan to age 100 with all events and income requirements mapped out.

– Ongoing expert monitoring of fund performance and cashflow planning.

In summary, your pension fund and your retirement is about you feeling comfortable with the income you are taking and knowing you can fund larger one-off pieces of expenditure along the way.

Understanding your tolerance to risk and knowing your money is never invested in a way which makes you feel uncomfortable is very important, to avoid sleepless nights.

For some risk is focused on avoiding loss of values in their portfolio. For others it is risk is about having the maximum opportunity for growth, even with the likelihood of greater fluctuation in pension value.

If you are an investor with a moderate approach to risk, as most are, you are unlikely to want your pension fund gambled on some unregulated overseas property fund which ‘guarantees’ you double digit returns (nor would we).

On the contrary; if all your pension was placed into cash-based assets, as a moderate risk investor, you’d be pretty miffed to see your money eaten away over the coming decades by inflation.

Inflation is the enemy of savings. And after years of record lows, post pandemic it is on the rise again, eating away at our earnings and spending power.

You can do something about this now.

By investing your pension in a risk-adjusted, diversified portfolio you will not only counter inflationary effects, you will also give the opportunity for growth to offset the income you draw from it.

Having read down to this stage I know you are serious about sorting out your pension and savings so you can continue with the lifestyle you wish for throughout your life.

And that is the main objective of a pension – to provide a continuing income when your working income has ceased.

Unless you are experienced in cashflow planning, investment analysis and the taxation of pensions you are walking a financial tightrope without the aid of a safety net!

As always professional unbiased and independent advice will serve you well.

When you are ready, we are here for you.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).