In this article, Chartered Financial Planner, Chris Hill, has given his 10 top tips for retirement planning.
- Changes to the state pension over the years have made it more difficult to predict what you might get. You can get a state pension forecast at https://www.gov.uk/check-state-pension;
- If you do not have a full state pension, you may be able to claim national insurance credits for years in which you were looking after a child under the age of 12 (not just limited to parents) or caring for sick or disabled person;
- If you still do not have a full state pension, you may be able to make Class 3 Voluntary National Insurance Contributions to boost your state pension;
- Contributions to a personal pension are boosted by 20% tax relief, subject to certain limits. This is way to make your retirement savings work a little harder for you;
- If you are working, your employer should offer a workplace pension, which they will contribute to as well as you;
- Can’t remember where all your pensions are. Use the pension tracing service to find those missing pots – https://www.pensiontracingservice.com/;
- Set a retirement goal. Knowing what you want out of your pension will help you (and your financial planner) plan to achieve it;
- You can pay into someone else’s pension and they will still receive the tax relief. So if you thinking of ways to help your children or grandchildren for the future, why not consider making pension contributions on their behalf;
- You can pay up to £2,880 into a pension even if you have no earnings and receive 20% tax relief; and
- You must be under the age of 75 to open a new pension, but there is no lower limit, so opening a pension account on behalf of children and grandchildren can be a great way to get them on course for a great retirement.
If you would like to speak to a member of WBW Chartered Financial Planners about any of the content in the article, or for any financial planning related queries that you may have, then you can arrange a free telephone consultation to take place during CISI’s Financial Planning Week 5th – 11th October 2020. To arrange a free consultation, please call 01626 202340 or email firstname.lastname@example.org.