Are you at a stage in life when you’re beginning to seriously consider your pension provision? As such, have you become aware that your parent’s retirement planning might not be up to scratch? Ensuring your pension is working to your complete advantage is vital to ensure you are fully set up for retirement. Here, we take you through preparing yourself and your parents for retirement.
Retirement may well have been the last thing on your mind until recently. However, there comes a time for all of us when our view of pension planning comes into sharper focus. For your parents, this might be even more pronounced. No matter how close you or they are to retirement age, in-depth strategy and planning are essential to make the most of retirement.
Your parents’ retirement planning
No one wants to pry into their parents’ financial situation, but whilst carrying out your own financial planning, why not open up a conversation with your parents? This needn’t be intrusive. Merely, through the process of assessing your own pension forecast, it could be beneficial to discuss your parents’ plans too. It can be doubly reassuring to know that everyone is covered for the future.
You may even consider suggesting a visit to a firm of independent financial advisers, like Acumen, together. The team at Acumen can assess your parents’ retirement planning, and yours too, to provide tailored advice. As a family firm, we understand the importance of looking after your nearest and dearest. So, we can provide bespoke pension planning strategies for the complete family.
Do your parents know all the options available to them with the introduction of the pension freedoms? Do they have investments or savings? Do they know how much money they need to retire? More to the point, do you? The team at Acumen is here to help you all understand how to optimise your current situation to get the most from your finances.
Pensions for young people
If you’re under the age of 40, the idea of pension schemes might not be top of your agenda. Are you aware of how much you are paying out each month for your workplace pension? Were you fully aware that you were auto-enrolled onto your workplace pension? It’s never too early to get organised. In fact, the earlier you begin your pension planning, the better your prospects could be in the long-run.
If you are over the age of 22 and are earning over £10,000 a year, your employer is required to provide a pension scheme for you. You aren’t the only person who contributes to this pension scheme; your employer and the government also contribute, which makes auto-enrolment an attractive proposition. Remember, this isn’t the only option available to you though. It is possible to opt out of auto-enrolment if you’d prefer.
We can advise you regarding your options and whether you would be better off remaining in your employer’s auto-enrolment scheme or with a private plan.
A 2017 YouGov study revealed that as many as four in ten 18-43 year olds admitted that they didn’t have any pension provisions in place for the future. Hopefully your parents are on track to maximise your retirement funds. This should be your goal too. As boring and unattractive as pensions might seem, it’s important to get this ball rolling as early as possible. Once you’ve started on a path of saving towards the future, you can simply forget about it. Your future self will thank you!
Again, Acumen can provide all the help and guidance you need.
The right pension plan for you and the right one for your parents are two very different things. We can help with both. At Acumen, we understand that planning for retirement can be overwhelming – whatever your age. Let us take the burden away and guide you through your retirement planning.
Contact Acumen today on 0151 520 4353 or email us on [email protected].