Let The Harvest Partnership Ltd help with retirement planning. What considerations should you make as you approach retirement?
The Harvest Partnership Ltd have created a 5 point checklist to help with Retirement Planning. There are a number of considerations you should make as you approach retirement. Ideally, it is good practice to review your financial situation ahead of retirement age. This is to help ensure you get the most out of your pension and any investments.
- Check Your Pension Pot
Many people save in to a pension scheme as part of their employment through PAYE. Workplace pensions have been great investment vehicles for many people. Many schemes deduct the pension contribution prior to a salary being paid and employers now contributing to the scheme also. The workplace pension scheme can also provide significant and very welcome tax reliefs.
Additionally, some chose to save in a Personal pension they set up themselves. It is time to check on these pension pots to check their value. You can work with an Independent Financial Adviser to manage these pension pots and ensure the money invested is working its best for you.
- Trace Old Pensions
Many of us change our jobs and move house throughout our adult lives. It can be easy to lose track of pension schemes that we may have had in place. The values of old pensions that you have contributed to in the past may only be a small sum or a more significant amount, either way it is money that you have ‘saved for retirement’ and are very much entitled to. Now is the time to find it and put it to good use.
The Pension Tracing Service is available online. It is a free service which will help you trace any lost pensions. Once you have the details of any pensions you have contributed to, your Independent Financial Adviser can help you manage or transfer these as necessary.
- Check And Claim Your State Pension
If you are within 3 months of State Pension Age you can submit your application for this to be paid in to your bank account on a monthly basis. This is paid 4 weeks in arrears. If you are further from State Pension age, it is well worth using the State Pension checking service on the GOV.UK website to give you an idea of what you should expect to receive. Knowing how much you are due to receive as a state pension may impact how much income you choose to take from any Personal or Workplace pensions you may have.
- Deal With Any Outstanding Debts
Retirement does not mean you suddenly and quickly need to pay off outstanding debts. It is however an extremely useful thing to do and can affect how you can utilise your pension pots. You can speak to your Independent Financial Adviser to see what options you have available to you. You my wish to take advantage of the tax free cash as part of the Pension Freedom Act 2015 and make a lump sum payment to pay off mortgages or other outstanding debts. Alternatively, you may wish to take a temporarily higher income from your workplace or personal pension in order to cover or increase your payments to pay off the debts you may have.
- Boost Your Pension Income
Retirement usually means you will no longer be contributing to your workplace or personal pension. Additionally, you will stop earning credits to your State Pension. However, this doesn’t mean you cannot make changes to boost your pension income. There are a number of steps you can take to make your pension pot go further. If you are not entitled to the full State Pension, often you can make additional National Insurance contributions to allow you to receive the full entitlement. However, this needs thorough consideration as the additional contributions may be put to better use elsewhere.
Alternatively, your Independent Financial Adviser can offer Pension Advice as to how best to manage your pension pots to ensure that you are receiving the best returns for your invested finances.
The Harvest Partnership Ltd are available to help with retirement planning. Get in touch via our Contact Us form.