No one starts out knowing exactly what they'll need for their retirement years. With so many different plans and options available we all need some help making the decision that's right for us. Thankfully, you're not alone. From pension calculators to financial advisors, there's plenty of help available.
But what questions should you ask?
What kind of pension do I need?
As time goes on our pension requirements change. So, before you take out your pension, it's a good idea to see what type of plan would suit you at your current age. Your financial advisor will be able to guide you towards the best plan for your age and your circumstances.
How do I manage my pension?
Your pension shouldn't get in the way of you enjoying yourself, but it's worth keeping in mind as you make life's big choices. If you're planning a long break or a big move, mention this to your financial advisor. They'll be able to help you keep your pension ticking over as you get on with your life.
How much should I save?
It's one of the most common questions people ask - and the answer depends on your circumstances. Your current age, your salary, and your planned retirement age, along with other factors, will help determine how much you should save each month.
How much will I need to live on when I retire?
Retirement brings a big change in lifestyle. Your commuting and electricity bills could fall significantly, but your health expenses may increase. You may eat out less often, but you may wish to travel more frequently. How you wish to spend your retirement years will inform how much you should put into your pension.
What funds can I invest in?
When you take out a pension your contributions are invested in different funds. You can choose to invest your contributions in less risky funds, with smaller potential returns, or higher risk funds, with greater potential returns. Your financial advisor can help you decide your risk profile, so you can balance potential returns against potential risk.
What are retirement benefits?
When you retire you may be eligible for certain benefits, such as a tax-free lump sum. The benefits available to you depend on the kind of pension you have taken out and the tax arrangements at the time of your retirement. Your financial advisor will be able to take you through the various options available.