For many UK adults, retirement planning can often feel like the least of their worries.
There are so many reasons why life – careers, relationships, children, mortgages – can become so busy that preparing financially for an event that may feel many, many years away drops down the priority list. Then, before you know it, retirement creeps up onto the horizon, and you may not have built up a large enough pension pot or assets to make the transition.
If that’s all a little doom and gloom, here’s the good news: starting late doesn’t make retirement impossible.
Understanding your finances
One of the first things you need to do is to understand your current financial position – not just your pension, but your entire portfolio, including your savings, investments, property, and any other assets you may own. This then needs to be balanced against any existing debts and major outgoings.
Further, if you have any workplace pensions from previous jobs, it’s vital that you locate them, particularly since the government’s recent revelation that there are 13 million ‘forgotten pots’ holding up to £1,000. In fact, the government has announced a new small pot consolidator that makes it easier for individuals to track their pensions and, as the name suggests, consolidate them into one larger pot.
Choose a strategy that suits you
For those who have are starting to engage with their retirement strategy later in life, there are still many options available to them.
Pension consolidation – combining multiple pension pots into one, for example, can make managing your savings easier. However, it’s important that you don’t simply select the most convenient option. Any decision on your new pension scheme should take into account several factors, such as your financial goals, your investment strategy and the fees involved.
Ultimately, there is no one-size-fits-all approach to retirement saving, so it’s crucial to seek advice and make sure you’re making an informed decision.
Take control of your retirement timeline
Whilst working past retirement age may not be on the agenda for many, the good news is that it’s no longer as fixed as it once was. While you can claim your State Pension at the age of 66 (this will be rising to 67 next year), there is no rule that says you have to. By carrying on working (on a full- or part-time basis) and delaying your retirement, even for a couple of years, you can significantly boost your retirement pot.
What’s more, there is the option to gradually phase into your retirement before jumping straight into the deep end, which is another avenue that can aid the desire to balance financial needs with lifestyle and retirement goals.
Late start? Don’t panic
Navigating the pension landscape can be overwhelming, especially if you come to it later in life. But you don’t have to face it alone. By seeking help from a regulated financial adviser like My Pension Expert, you can receive independent support and advice tailored to your unique situation.
While starting the retirement journey as early as possible is preferable, the truth is that it’s better late than never. Whatever age or stage of career you are in, there are steps you can take to help you save for the life you want post-retirement.
Start today by mapping out your financial situation, exploring your options, and, for anyone feeling overwhelmed or wanting support, remember that you can seek independent financial advice.
