Since the new pension freedoms announced last April, there has been a lot of discussion around how much you should save, where to invest and what to do with your pension pot once you retire.
Your retirement plan is one of the most important investments you will ever make. You will likely be making decisions on your pension’s investment strategy for the rest of your life, but it doesn’t have to be daunting.
Focus on the End Goal
To start saving, you first need to set yourself a goal; how much money will you need when you retire? The truth is there is no ‘magic number’. How much you need depends entirely on your personal financial situation and there are a number of things to consider when planning your retirement:
- What age do you plan on retiring?
- How many years of retirement do you think you will have?
- If you have one, will your mortgage have been paid off?
- Do you have any dependents that will require further financial support?
- How do you want to spend your retirement?
- How much are your current bills?
According to research from our Tackling the Savings Gap campaign, Britons believe they need an average of £23,457 per year to live comfortably in retirement. A 35-year-old starting to save for a pension today and aiming to retire at 60, would therefore need to save approximately £1,000 a month to receive this pension.
It’s a Marathon, Not a Sprint
Of course, pension products aren’t the only way to save for your retirement. ISAs are becoming an increasingly popular way to close the retirement savings gap, with savers putting £20 billion more into their ISA in 2015 compared to the previous year. However, it has taken legislation to get people to put money into workplace pensions.
With so many different savings and investment accounts, it can be difficult to know if you’re on target to reach your retirement goals. But by using True Potential One®, you can consolidate your investments into one convenient location, knowing exactly how much you have and how much you need to reach your goals. Of course, your goals will change along the way, so with True Potential One®, you have the flexibility to adjust your financial plan whenever you want.
Why True Potential One®:
- One financial life plan
- Plan your retirement spending in detail to set a realistic goal
- Consolidate your investments
- Flexible planning you can adjust when life changes
- Easier to take advantage of new pension freedoms
- Top up investments with impulseSave® to reach your goal
If you’d like to consolidate your investments and plan for a life beyond retirement, True Potential One® can help.
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