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10 Pension Tips for 2019

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Whatinvestment.co.uk  8 May 2019 

Chase de Vere’s Patrick Connolly offers 10 tips for 2019 to ensure a more prosperous retirement.

1. Make the most of your workplace pension scheme.

It makes sense for most employees to join their company pension scheme. These schemes are usually good value and all employers have to pay into their eligible employees’ pensions through auto enrolment.

2. Start saving as soon as possible.

Although it may seem like a long way off, the sooner you start saving the easier it will be to give yourself a more comfortable lifestyle in retirement. Even if you cannot afford to save much initially it is better to do something than nothing at all.

3. Increase your pension contribution when you get a pay rise.

While you might only be able to invest a smaller amount initially you need to actively increase this as you get older, otherwise the effects of inflation mean that in real terms you will be investing less and less over time.

4. Take more investment risk when you are younger.

When you are younger and have a long period until your retirement date you can afford to take more risk with your investments especially if you are investing monthly amounts, which most people will be.

5. Pensions and ISAs.

For most people the best approach for long-term savings is a combination of pensions and ISAs. Pensions provide initial tax relief which give your savings an immediate uplift, whereas ISAs can still be tax efficient and you are able to access your money whenever you like.

6. Keep an eye on under performing funds and high fees.

It is important that you review your pensions, ISAs and other assets you will be relying upon in retirement on a regular basis. You should get a statement from your provider either annually or every six months, which will give you an up-to-date valuation, it is also possible to check the performance of many plans online.

7. Understand your entitlement to the state pension.

Find out what state pension you could be entitled to and when you are likely to receive it.

8. How will you take an income from your pension?

As you get older, you need to give some thought to how you are going to generate an income in retirement. Pension freedom rules mean that many people will not simply buy an annuity with their pension pot.

9. Ignore Brexit.

There is lots of noise about the possible implications of Brexit. However, this should not be used as an excuse to delay your retirement planning. Nobody knows how Brexit will play out, although that is just about the same with everything else in life.

10. Take independent financial advice.

Many people should take independent financial advice. Retirement planning can be complex, and getting it wrong could have a huge impact on your standard of living, so it is important to make sure you are on track to achieve your retirement goals.

Read the full article here. 

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