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Get the retirement lifestyle you deserve….

The future has a way of creeping up on you. Rather than being scared of what it might hold, it’s best to be prepared. As the old saying goes, ” A stitch in time saves nine.” With a little bit of foresight, awareness, and strategic retirement planning, you can build the funds necessary to fully enjoy your retirement.

Below, the financial professionals at FH Manning have provided an easy to visualise template to help you and your loved ones achieve the retirement lifestyle that you so richly deserve.

The Retirement Process

According to Statista, only 42% of the UK’s working population are actively and reliably saving for retirement. While a significant subset (26%) intend to start saving regularly, that still leaves 32% of working age Britons without the proper financial safety net to see them through their golden years. The good news? It’s never too late to begin. The starting point is a firm understanding of the United Kingdom’s retirement policies and processes.

Generally speaking, the age of retirement for men and women in the UK is 66 years old. It should be noted that this is increasing to 67 and is likely to continue to increase. It is possible to access your pension funds at age 55 (soon to be increased to 67) but the earlier you access the funds the longer it has to last.

Once you’ve reached suitable retirement age for your specific situation, you may begin drawing on your accrued pension. It should be noted that unlike the labour laws in many other countries, there is no longer a compulsory retirement age in the UK. Except for a few select jobs, those past State Retirement Age may continue working indefinitely if they so desire. To get a better picture of the income you can expect in your retirement, there are a number of pension calculators available to help you.

Understanding Pension Types

The next key factor for retirement financial planning purposes is understanding the prime investment products available to you. In general, there are three main pension types. They are:

  • State pensions
  • Workplace (employer-run) pensions
  • Private pensions

The state pension scheme is available to all UK citizens who have contributed to National Insurance for a minimum of ten years. In order to get the basic, non-prorated amount of £179.60, an employee must contribute for a full 35 years.

A workplace pension scheme, on the other hand, is one that’s administered directly via your employer. Typically, you contribute a portion of your salary into the fund while your employer also makes a contribution.

Private pensions schemes also exist for those who don’t work or don’t have access to employer-run pensions. The terms of those pension schemes vary greatly depending on the pension’s provider.

Planning for Your Lifestyle

At heart, financial planning is a numbers game, but the secret to effective retirement financial planning is remembering the human element involved. The following quote from Money Marketing perfectly distills our point of view at FH Manning: “Financial advisers who are interested in people rather than numbers may veer naturally towards lifestyle planning, where money is just a tool to help people live the life they want.” To that effect, achieving the retirement lifestyle that you deserve is a matter of planning for that lifestyle as early as possible.

To jump start your savings, there are a number of different strategies that an investor can employ. You can combine disparate pension accounts. You can increase your contributions. You can even change your investment strategy to try and achieve higher returns. The key is remembering the goal, i.e. the lifestyle you and your family want during your retirement years. That’s where the retirement and lifestyle planning services of FH Manning come into play. To begin formulating a suitable investment strategy —and planning for your ideal retirement lifestyle— contact the financial professionals at FH Manning today. You can contact Claire, our Chartered Financial Planner, via email here  clm@fhmanning.co.uk.

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