It can be tricky to plan for a successful and comfortable retirement, yet this is the main goal for so many investors across the country.
With this in mind, we’ve put together this guide on retirement planning, to give you some clear steps on how to effectively build your wealth for when you retire. Read on to find out more.
Obtain a wealth manager
A crucial step for effective retirement planning is to obtain a wealth manager.
They can help you forge the right approach to your retirement with expert financial advice that’s specifically designed to help you achieve your goals.
Your wealth manager will ensure they fully understand your financial circumstances, as well as any needs or challenges you might be facing. They’ll conduct a full analysis of your finances to provide the best foundation on which to build your approach.
They can then offer tailored advice that opens up a clear path to help you optimise your wealth for retirement.
Devise a financial retirement plan
Another vital step when planning for retirement is to devise a comprehensive financial plan. This is also best done with the guidance of a financial adviser.
Your financial plan will lay out each of your financial goals – both short and long-term – and establish a variety of necessary steps to help you to reach them as efficiently as possible.
These goals could include retiring at a certain age, having a particular retirement lifestyle, or having a certain amount in your pension pot when you retire, for example.
With an adviser’s help, you can refine each of your retirement goals, so they are not only beneficial to growing your wealth, but also realistically aligned with your current financial situation.
Create an optimal structure for your pension contributions
Your adviser can help you optimise the structure of your pension contributions, so you can grow your wealth more tax efficiently for retirement.
They can make you aware of the various tax allowances that apply to your pension, including the annual pension allowance, plus advise you on the implications of the recent scrapping of the lifetime allowance.
You can then have a clear plan on how to efficiently make appropriate contributions – including when and how much – that allow you to shelter as much of your money from tax as possible. Your adviser will also ensure these contributions align with your financial circumstances.
Plan and prepare for various aspects of retirement
It’s also important to monitor and prepare for various different aspects of your retirement, which could impact your wealth.
For example, some people fail to adequately prepare for the length of their retirement, and often underestimate how long it will be – thus leading to insufficient funds for their retirement.
For a start, you’ll want to be debt-free at retirement date, to ensure that you don’t have obligations that may place a constraint on your finances.
Your adviser can help you analyse your situation, goals, etc., and create a realistic plan to support the whole length of your retirement – including it being longer than you had originally planned.
This will help you build and structure your wealth – such as various financial assets you might have – to achieve your goals and fund the full length of your retirement.
Consider ongoing financial advice
Another way to help you secure a successful and comfortable retirement is to consider ongoing financial advice.
A proactive and continuous relationship with your adviser could help you to better adapt your plan where necessary, to navigate all the factors which could affect your finances.
This can include, for example, changes in the markets, tax rates, or aspects of your own personal life and career.
Your adviser will continue to provide an expert strategy to manage these changes, and ensure you’re always on the best trajectory for a successful retirement outcome.
Please note, the value of your investments can go down as well as up.