Retirement will be one long holiday, should be an enjoyable experience and planned with continued financial stability in mind.
It is a fact that most people tend to spend more when on holiday, so will any existing savings and pension arrangements be adequate for day-to-day needs and for additional enjoyment.
When the day arrives, for many, it can be compared to jumping off a cliff having realised that existing savings and state pension benefits may not be adequate to maintain a desired lifestyle.
Spending today rather than saving for tomorrow is a common attitude driven by cost-of-living increases.
Saving a small amount is preferable to not saving at all.
A workplace pension for those who are employed to join and into which the employer is also required to contribute.
The self-employed, however, are often found guilty of not treating themselves in the same way and should consider setting up an equivalent arrangement.
In both cases, there are significant tax rebates which will be added to your fund.
Start saving as early as you can and recognise that even small contributions can build a significant fund over the many years to the anticipated retirement date.
As contributions are flexible, it is easy to save more when you can afford to whilst knowing that you can save less if you need to.
You are allowed to contribute to as many pensions as you like so long as combined contributions are within HMRC limits.
It is important to regularly assess your retirement needs to check contributions along with other savings will achieve the desired outcome.
Sadly, some do not survive to retirement age, however their loved ones benefit instead.
The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
