There is much to be said for living for the moment.
Yet many people risk a life of poverty in retirement because they are significantly underfunding their retirement savings.
We are all expected to live longer and there is a good chance that many of us will live almost a third of our lives in retirement so you would do well not to underestimate the size of the retirement fund you will need to live comfortably.
The difference between starting to contribute towards a pension at 35 and starting at 45 is staggering.
It can be even worse for women – they live longer than men on average and many will take career breaks to have children, leaving gaps in their contributions.
The longer you leave it, the harder it is to catch up on missed time.
Increasing your retirement provision through a private pension, is a highly tax-efficient way of boosting retirement provision and it is worth seeking advice on maximising this opportunity to meet your personal goals.
As you get older and move into your forties and fifties, you need to work out whether the plans you had in place are on track. Firstly, establish what your likely state pension entitlement would be.
You should also contact the pension trustees of your current and previous employers, who will be able to provide pension forecasts, as will the companies managing any private pension plans.
Given the volatility of stock markets there is a chance that what you are currently on target to receive is less than you’d ideally like, or perhaps even need.
It makes sense to seek advice about how you can bridge this gap. You might need to consider whether options such as retiring later or working part-time beyond your retirement date may be a more realistic way of meeting your retirement goals.
Retirement planning may not be the hot topic of conversation at dinner parties and social gatherings but that does not mean it should be ignored.
Plan ahead and get your strategies in place early will mean that your dreams of a happy retirement have a greater chance of coming to fruition.
Failure to act will mean that they are nothing but pipe dreams.
To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, contact Simon Hoadley Wealth Management on 01323 431938.