Four ways to plan a financially abundant retirement
If you want to retire with an income that can fund a good lifestyle, there are four strategies that can help make this happen:
1. Use tax-friendly savings wrappers
All companies have, or soon will have, workplace pensions schemes in which they automatically enroll employees. Both employers and employees contribute to the pensions funds and all contributions are tax free. Many schemes allow you and your employer to contribute more than the minimum amount required by the pension regulations to increase the pension money available to retirement.
Self-employed people can contribute to a self-employed person’s pension scheme, or an individual savings account (ISA) offers another way to save with all withdrawals being tax free.
2. Invest as much as you can afford in pensions and ISAs
Currently, you can save a maximum of £40,000 a year into a pension. For ISAs, the maximum amount is £20,000. Experts like Jeff Prestridge, writing for the Mail on Sunday, suggest both are worth taking maximum advantage of.
3. Start early
You’re never too young to start saving. Someone starting to save at aged 20 could be several hundred thousands of pounds better off at retirement than someone who starts saving at age 40.
4. Monitor your finances
Most saving schemes can be monitored online, so regularly checking on your investments can alert you to when you need to switch saving strategies or contribute more each month.
For pensions advice, and help in creating a wealth management plan, talk to one of our experts at Endeavour Financial Planning.
A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation
Tax Planning and Auto Enrolment advice are not regulated by the Financial Conduct Authority.
Source used: http://www.thisismoney.co.uk/money/pensions/article-4937080/How-build-fortune-retirement-really-enjoy.html