Time May Be Right To Take A Look At Retirement Planning With Abacus Wealth Services

For people of current working age, the start of 2021 and a new beginning presents a timely opportunity to make financial plans, writes Nigel Round, Managing Director of Abacus Wealth Services.

And Abacus Wealth Services has the expertise to help successful professionals with the planning for the time they stop working, which can often seem too far away to prioritise.

If life is not busy enough juggling careers, family life and other time pressures, the global COVID-19 pandemic has increasingly moved focus to the here and now.

With social distancing and other restrictions introduced to protect public health having had an impact upon work and life priorities, it is not surprising many successful people will have put their long-term plans on the backburner.

But planning your options, with the help of informed experts, is crucial to being confident that you can retire comfortably when the time comes. And rising life expectancies make it vital you are prepared financially for a long life, rather than being left short in later years.

Whilst the long-term benefit of saving towards your retirement is undeniable, there are also short term benefits in the form of tax savings. For business owners this can be a tax-efficient way of extracting profits from a limited company.

The team at Abacus Wealth Services are experienced in this area and can help guide you through the many considerations that may help shape your retirement pathway. Forecasting how much you need to save does not need to be overly complicated.

You can begin by using the Pensions and Lifetime Savings Association’s set of Retirement Living Standards which provide users with an idea of their future lifestyle, explaining how much is needed to be put aside each year to enjoy that lifestyle – minimum, moderate or comfortable.

You can use your age as a guide to hit certain benchmarks at each life stage – your 20s, 30s, 40s and beyond. The mindset of putting money away for 10 years or more can be challenging to grasp, but in simple terms the earlier you save, the better.

Using sophisticated cash flow modelling Abacus Wealth Services can help you plan how much you should be saving at each stage of your life.

And do not forget the importance of keeping track of your existing pension savings, no matter which life stage you have reached.

With workers moving between employers more regularly, there is estimated to be nearly £20 billion in savings held in 1.6 million lost or dormant pension pots in the UK – that is nearly £13,000 per pot [1] – which can make a huge difference to your retirement.

You may already have pension provisions in place and need help in reviewing their performance against the context of your goals.

Whatever stage you have reached, it is never too early to start considering your future so that we can help you reach your retirement goals.

Understanding your present situation and your options is the first step to planning for all eventualities. And as the COVID-19 pandemic has shown, you must make sure you are prepared for the future.

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The value of a pension with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

[1] ‘Lost pensions: what’s the scale and impact?’, Pensions Policy Institute, October 2018

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