How to re-work your retirement strategy

Pension Awareness Week could not have fallen at a more appropriate time, given recent political and economic developments.

Indeed, the temporary suspension of the state pension triple lock alone has the potential to upend many people’s retirement plans, as our executive chairman, Andrew Megson, explained earlier this week in The Independent. However, the announcement of National Insurance Tax increases will have added even greater pressure to savers, as they will likely feel that they have less money to save for the future. 

Of course, this will be an unnerving time for savers. However, it is important not to lose focus of future retirement goals. Britons should use Pension Awareness Week as an opportunity to re-establish power over their retirement plans and reassess their strategy. 

This may seem like an overwhelming and complex task, but it needn’t be. In fact, it just takes a few simple steps to readjust one’s retirement plan in accordance with changing circumstances…

Assessing your current situation

Before making any major financial decisions, it is vital to assess one’s current financial situation – and being honest in the analysis. This will involve reviewing existing incomings and outgoings, as well as the amount a person has saved into their pension and the value of their investments. For some, this may involve using the Government’s pension tracing service to find pension pots from previous jobs. 

This may be a time-consuming exercise, but it is incredibly important to understand the progress of one’s savings plan, and whether urgent action is needed to secure a strong retirement outcome. 

Consider retirement goals

Once a thorough understanding of one’s current finances has been grasped, attention can be turned to future finances and retirement goals. 

For example, savers should establish their target age for retirement, as well as the lifestyle they would like to enjoy. This information will give them a solid idea of what they are working towards and, more importantly, how drastic their action must be to achieve this. 

What’s your risk appetite? 

Understanding one’s risk appetite is also an important element in developing and adjusting a retirement strategy. Naturally, all pension investments come with an element of risk – however, some present more than others, particularly those that offer the potential for the greatest gains. 

As such, savers should assess how much they are willing and able to lose with investments. This will give them a good idea of the type of investments they could be open to, to ensure that their pension pot grows at a healthy rate. 

Seek advice on your strategy

Of course, any major decision regarding one’s retirement strategy should not be taken lightly. As such, it is vital that savers seek independent financial advice before making any decision. 

At My Pension Expert, our team of experts consider the entirety of a client’s financial situation, from their current circumstances to their retirement goals and risk appetite, to develop a tailored strategy to suit their needs. Whether this is pursuing certain investments, switching pension providers, or purchasing a retirement finance product, our experts explain the various options to the client in great detail, allowing them to make an informed decision. 

Better yet, My Pension Expert also offer regular reviews of their retirement plan. So, we can offer suitable solutions to keep people on track to their ideal retirement if political or economic circumstances change.

Savers should not be intimidated by the thought of reassessing their pension strategy. Rather, they should feel empowered to seek financial advice and review their current plan accordingly. Doing so will certainly give them peace of mind later down the line and help them achieve the best retirement outcome possible.