Pension and Retirement Planning
we can help you start planning for the future…
your retirement is likely to last 30 years or more
It is a well-known fact that as a population, we are living longer. Therefore, when planning for your retirement, you need to have pension planning in place to ensure that your pension lasts as long as you do. After all, nobody wants to run out of money later in life.
Contributing into a pension whilst you are working will help to ensure that you have enough money to last once you reach retirement. You can change your contribution amount at any time, or top up with additional lump sums, subject to certain limits. The government will also contribute towards your pension, through something called tax relief.
If you’re contributing to a workplace pension scheme, your employer will also contribute to your pension. To build a pension provision that will provide you with a secure financial future, speak to one of our advisers, who can help you plan to maximise returns throughout your working career.
income & retirement
how much should I save in my pension?
The amount that you should save depends on the amount you can afford to save, how many years you have to save and what your income needs will be when you retire. Our pension advice team can work with you to calculate how much money you are likely to need for a comfortable retirement and what you would need to save to achieve this.
If you are interested in finding out how much you may need to save, please visit our Pension Shortfall Calculator.
Starting your pension later in life
If you start a pension later in your working life, you may have a better idea of what your needs at retirement may be. However, you will have less time to reach this goal, which means you may have to contribute much more into your pension each month to achieve your desired standard of living, compared to if you started at a young age.
Starting your pension when you are young
You can start by saving small amounts monthly, allowing the maximum timeframe for your pension to potentially grow in value. If your income improves, for example due to a promotion, you can increase your contribution amount.
If you are aged between 22 and state pension age, earn over £10,000 per year and work in the UK, you will be automatically enrolled into a workplace pension scheme. A workplace pension scheme allows you to take advantage of employer contributions. Our pension advice team in Birmingham can review your current workplace pension and make recommendations tailored to you.
Auto Enrolment is not regulated by the Financial Conduct Authority.
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the impact of starting early
You’ll be surprised at the big difference it can make to your savings if you start saving early. This is because of ‘compounding’.
Compounding is a simple concept. When you invest money, you earn interest or income on your capital (the amount you invested). Then next year, you earn on both your original capital and the interest from the first year, and so on. It’s the snowball effect – as your capital ‘rolls down the hill’, it becomes bigger and bigger.
The earlier that you start investing, the more time you have for compounding to take effect.
frequently asked questions
When can I retire?
At Kind Wealth, our pension advisers can help you prepare for retirement by calculating how big your retirement fund needs to be. You can also visit our Pension Shortfall Calculator.
Most people need two-thirds of their annual income when they were working to live on when they are retired, in order to maintain their lifestyle. This may seem unachievable, however your adviser will work with you to determine how much you need to save per month to reach your goals.
The amount of income that you need to retire comfortably depends on your individual circumstances. Your financial adviser will work with you to establish how much income you will need in retirement.
When should I start planning for retirement?
The earlier you start planning for retirement, the more money you could potentially have for the future. Review your income and finances, and if you can afford to put aside money into a pension, consider starting the process as soon as possible.
How much do I need to save into my pension?
The amount that you should save into your pension depends on how you plan to live your life in retirement. One of our advisers will be able to help you establish how much you need to save into your pension, tailored to your individual circumstances.
How long do I need my pension to last?
Your retirement can last for over 30 years, depending on when you decide to retire and how long you live for.
What happens to my pension when I die?
If you have a Defined Benefit, or more commonly known as a final salary, pension scheme, in the event of your death, the scheme rules will determine what will be paid out in the event of your death and to who. This usually consists of a spouse’s pension and also possibly a lump sum.
If you have a Defined Contribution pension scheme, it is likely that your beneficiaries will receive the value of your pension upon your death. However, sometimes they can receive a refund of what you have paid in, which can be far less, so it is important to review your pension arrangements.
If you are receiving your state pension, the payments will stop.
How do I pay money into my pension?
To pay money into your pension, you can speak to one of our financial advisers, who will be able to advise you on the most suitable way to contribute to your pension. This may even be your workplace pension scheme.
What is the best age to start contributing to a pension?
It is a good idea to start contributing to a pension as soon as you can. This means that you’ll have as long as possible to save for retirement and your fund has more potential to grow.
When is the right time to invest a lump sum into a pension?
Deciding when to invest a lump sum can be difficult, as it is impossible to predict when the markets will go up or down. Ideally, you want to contribute when markets have fallen significantly, because then you are able to benefit if the markets recover.
Generally, it is better to invest sooner rather than later though, as this gives your money more time to potentially grow.
The value of pensions and investments, and the income they produce, can fall as well as rise. You may get back less than you invested.
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Trusts, Inheritance Tax Planning, Estate Planning and Tax Planning are not regulated by the Financial Conduct Authority.
The guidance and/or information contained within this website is subject to UK regulatory regime and is therefore targeted at consumers based in the UK.
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Kind Wealth Limited is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited which are authorised and regulated by the Financial Conduct Authority.
Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the financial conduct register (https://register.fca.org.uk/s) under references 440703 and 440718.
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Kind Wealth is registered in England and Wales No 08431437, Registered Address 3B Swallowfield Courtyard, Wolverhampton Road, Oldbury, B69 2JG.