When planning for your retirement it is imperative you set clear retirement income goals, without goals you cannot effectively check if your pension savings are on track. When setting your retirement income goals, you will need to consider how much income you will need to have the retirement you want. There are many factors to consider when planning your retirement income, such as:
- Living expenses in retirement – this could include cost of living and household bills.
- Hobbies – do you plan to take up new hobbies when you retire?
- Travel expenses – if you plan to travel more in retirement you will need to factor this into your retirement income planning to ensure it is achievable.
Once you have clear retirement income goals outlined in your pension and retirement plan, you can use these to determine whether your pension savings are on track and identify any shortfalls in your pension savings.
Shortfalls in your pension savings can occur if you have had periods of reduced income, such as maternity leave or have had to take time off work through accident or illness or when your pension investments have not performed as well as anticipated.
The earlier you identify these shortfalls the more time you will have to react to them and adapt your pension savings plan to overcome them. This is one of the most important reasons for regularly reviewing your pension plan and without regular reviews a shortfall could go unnoticed until it is too late to overcome.
If you think you may have a shortfall in your pension savings or are unsure if you are on track with your retirement income goals, it is advisable to seek independent pension advice. If you are looking for pension advice in Essex, we can help you find a pension adviser to help you identify how your pension savings are performing and help you react to any shortfalls.
Our recommended financial advisers provide pension advice in Essex to work with you to review your current pension plan and determine whether you are on track with your retirement income goals. All of the financial advisers we recommend provide advice that is tailored to your unique circumstances.
Actions to consider if you have a shortfall in your pension savings
If you have identified a shortfall in your pension savings there are a number of actions you can consider to help overcome the shortfall. It is imperative you seek independent pension advice before making any changes to your pension plan to ensure you are taking the best course of action to overcome shortfalls in your pension savings.
Factors you may want to consider include:
- Are you making the most of available pension schemes?
- Have you joined your workplace pension scheme?
- Could you boost your contributions to your workplace pension scheme?
Are there other personal pension schemes you could benefit from joining?
The cost of overcoming a shortfall in your projected pension income will vary depending on your age, the further away you are from retirement the longer you will have to overcome the shortfall and therefore will have more time to boost your pension savings and allow them to grow.
If you are looking for pension advice in Essex we can help you find a specialist pension adviser that can provide advice on all aspects of pension planning, from pension planning strategies to reviewing and updating pension plans to ensure they are on track with your retirement goals.
Seeking pension advice will help you to gain a clearer understanding of the different options available to you and ensure that you have the most effective retirement planning strategies in place for your personal circumstances.
At PensionAdvice.org we can help you find a FCA registered financial adviser for independent pension advice in Essex. The financial advisers we recommend offer bespoke pension advice in Essex on all aspects of pension and retirement planning.