When saving for retirement, it’s important to ensure that you think carefully about how and when you may need to withdraw money, as well as having enough money to last.
It may be tempting to withdraw large sums from your pension upon retirement, but it’s vital to plan carefully about how you go about making your money go further by reducing potential tax liability and ensuring you don’t run out of money.
What are some of the best ways of making your retirement savings go further?
A simple solution
A simple solution to ensuring you have more savings at retirement could be to work for longer. This would reduce the risk of your money running out. This, as well as part-time options, may be a consideration for many people who do not have a compulsory retirement age at their workplace.
Boost your income
There are many options to boosting your income at retirement, including renting out a spare room or opting for investments earlier on. Retirement can bring many variables into the mix, meaning finding the right kind of investment is a complicated decision.
A great way to decide on investments that can potentially boost your retirement income is to contact a financial adviser, such as our team at KLO. Here, we can work with you to work out a plan to see you through your retirement and ensure you are able to live comfortably whilst maximising your savings for the future.
When working out your budget for retirement, it’s important to calculate exactly how much you will need when you are out of work.
This means you can ensure that you are able to avoid running out of funds as well as having enough to spend on the things you need. It’s important to go through all of your outgoings as well as any potential gifts you may wish to give in the future.
Consider any potential tax liability
Although the pension freedoms mean that you are able to withdraw money from your pension pot as you wish, this does not come without tax. It may be worth planning the amount you wish to withdraw and calculating the potential tax liability to ensure you are making savings at every opportunity.
Talk to a financial adviser
If you’re looking for help investing for retirement and retirement financial planning advice, contact our local financial adviser team today or look through other questions here. Please call on 01926 492406 or email us at firstname.lastname@example.org to make an appointment.