A comfortable retirement is something that many investors want to build towards, no matter what age they start to plan. But what does that involve, and how best can it be done?
To find out, we’ve put together this article to explain how you can use financial planning to achieve a successful financial outcome when you retire.
Read on to find out more.
Seeking the advice of a modern wealth manager
One of the most essential components in your retirement planning is the expert advice you can receive from a modern wealth manager.
Your experienced adviser will have comprehensive knowledge of all aspects of financial planning and can help you build the right approach for your financial situation.
You can discuss every aspect of your finances with your adviser, including your income sources, what financial dependants you have, your future ambitions, as well as any challenges or worries you might be facing.
This will allow your adviser to give you tailored advice for your retirement planning, that not only helps to restore your financial confidence but gives you an approach that’s aligned with your financial circumstances.
Creating an extensive financial plan
Another important part of your planning for retirement is to create an effective financial plan. Your adviser’s guidance can ensure your plan is extensive and beneficial for your wealth.
You can establish any retirement goals you have for the future, which can include:
- Having a certain amount in your pension pot when you retire
- Living your desired retirement lifestyle
- The age you wish to retire
- Having enough money in your pension to support any financial dependants
Your adviser can help you refine these goals so they’re realistic in terms of your current financial situation.
With a plan in place, you can begin implementing crucial steps to reach these goals as efficiently as possible, without compromising on your current financial capabilities.
Optimizing your pension contributions
It’s also vital that you incorporate a resilient investment approach into your pension planning, so you and your adviser can optimize your pension contributions.
Your wealth manager will make you aware of the many tax charges and allowances that will apply to your pension, so you can contribute as effectively as possible towards your goals, and shelter your money from tax.
They can also make you aware of any changes that could impact your wealth growth, such as the recent removal of the lifetime allowance – as of the tax year 2023/2024.
Their insights can help ensure you are continuously building your wealth as tax efficiently as possible, by contributing the right amounts at the right times.
Consider ongoing financial advice
While your initial plan is crucial for retirement, it may be worth considering ongoing financial advice that can help you adjust your plan where needed.
There are various things that could impact your wealth building for retirement – tax changes, your employment, market changes, lifestyle factors, etc.
Your adviser can regularly review your plan alongside these changes, to make sure you navigate these impacts as effectively as possible and always have a plan that’s best suited to your current circumstances.
As a result, you can maintain the best trajectory toward the successful financial outcome you’ve always desired for your retirement.
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Please note, the value of your investments can go down as well as up.