Existing clients can use these links to log in to the Infinity dashboard. Not a client? Why not get in touch to find out about our services.
Saving for a pension is becoming an increasing priority for individuals for UK citizens as the realisation sets in for many that the state pension is not going to be sufficient for them to live out their retirement years in comfort. According to a recent report by the National Employment Savings Trust (NEST) in the UK, saving for retirement has moved up the priority list for consumers from position 7 in 2011 to 3rd place in 2013, behind holidays and saving for a rainy day.
The report yielded some other interesting results. Only 48% of those questioned answered yes to the question “Do you know how much money you will need in retirement?” which means that at least 50% would definitely benefit from a pension MOT! Many people simply don’t know where to start so here’s a handy 3 step guide to getting to grips with your retirement fund.
The first step is to work out exactly how much you currently have saved in your pension pot. As our working lives are increasingly fragmented, many of us will have several different pension plans from different employers. Dig out all the paperwork you have and file it all together for easy reference.
Is it possible that you have “lost” a pension? Many people do lose track of what they have saved and paperwork disappears. If you suspect you might have lost a pension somewhere it is worth looking into this as your savings may be worth a lot more than you think! The UK government website has a Pension Tracing Service and they claim that one in five people who use it find a lost pension.
Next work out how much you think you will need. Of course this is the million dollar question with so many variable factors. You may not know when you will retire and you certainly won’t know how many years you will live once you stop working, although with life expectancy increasing all the time, it could easily be 30 years.
You can start to get some idea of your needs by looking at factors such as whether you will have rent or a mortgage still to pay, the lifestyle you hope to achieve and whether you will have any dependents to look after. An online pension calculator can help you get a handle on this and the Citizens’ Advice Bureau also offers some useful advice on their website.
Of course as you progress through your working life your income, savings and responsibilities will change. Life events such as marriage, divorce and the birth of children will all have a knock-on effect on your pension situation so it is important to review this on a regular basis.
Once you have done the above two steps, you need to reconcile the two and adjust your savings plan in line with your findings. According to a Scottish Widows report published in 2011, 49% of the UK workforce are not saving enough for their pensions and need to make changes to reach their target amounts.
Many expats have great earnings potential and can benefit from significant tax advantages. It may be in your interest to consolidate different pensions into one and even to transfer out of the UK system with a QROPS. An expert can help you work this out. Infinity offer a bespoke pension planning service for clients across Asia and can help you maximise your retirement savings to ensure that your twilight years are as great as they can possibly be.
For professional advice on pension planning get in touch today.