5 top tips to retiring, and how working with a financial planner in Worcester can help

Retirement is a significant milestone in your life, and it takes a considerable amount of planning to get it right.

From how you’ll spend your time to whether your wealth is suitably organised, there’s plenty to think about when finally giving up work. This can make it all seem rather overwhelming, and you may be finding it difficult to know where to start.

So, read on to discover five top tips to retiring, and how working with an experienced financial planner in Worcester can help you achieve the smooth transition you want.

1. Start planning sooner rather than later

Retirement is often seen as the final act in the story of your working life. As a result, a common mistake many people make is to neglect planning for later life until they’re at the age when it’s most pressing.

In reality, this can be too late to make any effective decisions that would help you make the most of your wealth.

That’s why starting to plan sooner rather than later can be so powerful. It gives you the space to properly consider your options, and the time to implement any changes that could boost your wealth.

That might be making use of tax-free allowances or exemptions in multiple tax years. Or it might involve giving any investments you have more time to grow in the markets.

The sooner you start planning, the better placed you could be when you finally decide to give up work.

2. Set goals to work towards

While starting to plan sooner rather than later is useful, it can be difficult to do so if you don’t know how much you actually need to save.

This is why it can be sensible to start with your goals first. Rather than arriving at retirement with a sum of money you’ve saved up and then deciding on your ideal lifestyle, it can be more effective to work out what you want to do in later life first. Then, you can organise your wealth so that you can use it to hit those targets.

By approaching your planning this way round, it puts the emphasis on the “what?” rather than the “how much?” which, in turn, can refine your focus and help you make choices that suit your personal aspirations.

This is a core tenet of effective financial planning. That’s why at Britannic Place, we’ll always start with you and your goals before we ask about your money.

3. Keep track of all your pensions – and know what’s in them

Pensions can be a highly effective way to save for retirement. They’re considered to be tax-efficient thanks to tax relief on your contributions, and growth that’s free from Income Tax and Capital Gains Tax (CGT).

However, while pensions can come with these advantages, many people lose track of their pots. As reported by PensionsAge, there is an estimated £37 billion in lost or dormant pensions across 1.6 million UK savers.

So, it’s vital to track down any savings that you may have. This could be because you have worked for multiple employers throughout your lifetime, or you know that you started more than one private pension.

No matter the reason, it’s important to check all your documentation and make sure that you don’t have any outstanding retirement savings.

Furthermore, it’s important to know how much is in your pensions, too. Indeed, according to Standard Life, 75% of UK adults don’t know what’s in their pots.

Knowing what’s in these funds can help you when planning for retirement, as you can make more informed decisions with your wealth if you know exactly how much you have available to achieve your goals.

4. Make sure your money is as tax-efficient as possible

No one wants to pay more tax than they have to. This is especially the case in retirement when you’ll no doubt want to make the most of your wealth, too.

As a result, it can be sensible to see whether you can reduce the amount of tax you may be liable for in later life. For example, you may want to consider:

  • Tactically drawing your money in retirement to avoid paying more Income Tax than necessary
  • Using ISAs to save and invest your money while shielding it from Income Tax, CGT, and Dividend Tax
  • Planning around Inheritance Tax (IHT) to mitigate a potential future tax bill for your loved ones.

This list is far from exhaustive, and there are various methods you can employ to make your money as tax-efficient as possible.

Bear in mind that tax planning can be complicated, and mistakes can be costly. That’s why it can be useful to work with a professional when doing so.

5. Work with a financial planner

Having a professional in your corner can make all the difference in achieving a successful retirement. That’s why you may want to consider working with an experienced financial planner. That’s exactly who we are.

At Britannic Place, we’ll start by learning all about you and your goals for the future. From there, we’ll take a holistic view of your wealth, and make suggestions and recommendations to help you organise your money so that you can reach those targets.

Crucially, we’ll be with you every step of the way, giving you the confidence and reassurance that you’ll stay on track as you approach and enter retirement.

If you’d like to find out how working with a financial planner in Worcester could help you, please email info@britannicplace.co.uk or call 01905 419890 to speak to us today.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

The Financial Conduct Authority does not regulate tax planning.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

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