We’re often too busy living life today to worry about tomorrow. But it’ll only take a minute to explain why it’s never too early to think about your longest holiday ever – your retirement. We’ll start by being frank.
If you’re thinking of relying on the State Pension alone, current numbers show this isn’t going to be enough to be able to thrive in retirement. Though no one knows what the future holds, the good news is there are lots of ways to make a difference right now. Like putting a bit more into a pension. And enjoying the boost that tax relief on your contributions can bring.
You won’t be able to touch your pension until you’re at least 55, or possibly older. But the Government could be topping your contributions up as you save. Combine this with contributions from your employer, and you could end up with a lot more in the long run.
Don’t have an employer? Don’t worry. Personal pensions also benefit from tax relief. Alternatively, you could look into an Investment ISA. Unlike pensions, there’s no boost from tax relief or employer contributions on the money you put into an ISA, but you can access your savings if you need them. And the sooner you start to invest in an ISA, the longer your money has a chance to grow, tax-free.
It’s important to remember that the value of your pension fund or Investment ISA could fall as well as rise over time. You could get back less than you invest.
Retirement planning is dynamic. You may have to adjust your plans to suit your changing needs. Also remember that tax rules may change in future and their effects on you will depend on your individual circumstances, which can also change. So, if you’re not sure what’s right for you, it’s a good idea to talk to a financial advisor.
We think retirement should be the longest holiday of your life. Which is why it’s important to start planning. Today. It could mean the difference between just getting by or enjoying the holiday of your dreams.
