Are you approaching retirement with concerns for your finances? Fear not, as there are several things you can do to help get your retirement savings back on track.
Read below, for our top tips on how to optimise your retirement savings and build your wealth effectively.
- Seek advice from a wealth manager
One of the most essential steps to take when getting your retirement savings back on track, is to seek advice from an expert wealth management service.
Your adviser will be able to offer guidance on what approach is best suited to building your wealth efficiently, to ensure you have sufficient funds for when you reach retirement.
More importantly, an expert’s advice can be specifically tailored to your current financial circumstances, factoring in all your challenges and concerns. This provides you with unique advice that’s optimised to help you overcome your financial obstacles.
- Create your financial plan
Another important tip is to create your financial plan, which will outline all the steps you should take to reach your retirement goals.
With your adviser’s help, you can establish what each of your retirement goals are. These can include the age you wish to retire, how much you want in your pension pot, and the type of retirement lifestyle you want to live.
Your adviser will help to ensure each of these goals are not only aligned with your personal ambitions, but are also achievable when compared with your current circumstances.
Your adviser will also help lay out the steps to take to achieve these objectives as efficiently as possible.
This plan will be the foundation on which you build your wealth for retirement, which is why advice from your wealth manager is crucial.
- Restructure your pension contributions
If you want to achieve the best financial outcome for your retirement, then you may need to consider restructuring your pension contributions, to make sure they’re growing your retirement savings in the best way.
Your adviser will help you make the right contributions that shelter as much of your money from tax as possible, to increase the efficiency of your pension savings.
They can advise you on how best to navigate the allowances on your pension, which as of the current tax year (2022/2023) are:
- Annual allowance – £40,000 – the amount you can contribute to your pension each year without being charged tax.
- Lifetime allowance – £1,073,100 – the amount you can contribute to your pension in your lifetime, while still being sheltered from tax.
With more tax-efficient contributions, you’ll have the best chances of achieving your retirement goals.
- Consider ongoing financial advice
With expert financial advice from a wealth manager likely making a meaningful difference to your retirement, you may also consider it important to receive ongoing advice as you put your approach in place.
Despite having an initial retirement plan, there are many different factors than can impact your pension savings, and how efficiently you’re growing them.
For example, you might experience a change in career, find a spouse, or be affected by fluctuating inflation rates. This can result in your initial plan not being as well-suited to building your wealth anymore.
However, with ongoing advice, your adviser can help you prepare to weather these impacts, making necessary adjustments to your plan, so you can more effectively navigate the road ahead.
Start using these simple steps to get your retirement savings back on track, and contact an expert wealth manager now, to start restoring your financial confidence in your retirement plan.
Please note, the value of your investments can go down as well as up.