How to Get Retirement Ready

Guest blog by Adriana Lockman, Founder of Isamor 

Please remember that a pension is a long-term investment, the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.   

A comfortable retirement is a common financial goal, and contributing to a pension is essential to achieving it. Although retirement may appear distant, there’s much to consider.  

In this blog, we run you through 10 key steps that will help you get pension retirement ready, so that you can feel confident when it comes to making smart decisions about your savings. By planning ahead, you can look forward to a stable and enjoyable retirement.  

1. Assess your current financial situation 

Start by evaluating your current financial standing including your income, expenses, assets, and liabilities. Determine how much you can save for retirement without compromising your current lifestyle. 

2. Set retirement goals  

Think about the kind of lifestyle you want to have during retirement. Consider factors like travel, hobbies, healthcare and support for family members. Estimate the annual income you will need to maintain this lifestyle, taking inflation into account. 

3. Calculate your pension gap 

Compare your projected retirement income with your current savings and expected pension benefits. This will help you identify any potential shortfall in your retirement fund, known as the ‘pension gap’. Knowing this gap will give you a clear target to work towards. 

4. Contribute to your pension plan  

Commit to regularly contributing to your pension plan. The earlier you start, the more time your investments have to grow, thanks to the power of compounding. Look into your employer’s pension scheme and take advantage of any matching contributions. 

5. Diversify your investments  

Don’t rely solely on your pension plan for your retirement income. Diversify your investment portfolio with other assets like equities, bonds and property. This will help spread risk and provide the potential to increase your returns. 

6. Review your pension plans regularly  

Revisit your pension plan at least once a year to ensure it’s on track to meet your retirement goals. Adjust your contributions or investment strategy if necessary, and even contact us about seeking professional financial advice if you need clarification on your decisions. 

7. Plan for the unexpected  

Life can be unpredictable, so it’s essential to have contingency plans in place. Ensure you have an emergency fund to cover unexpected expenses, and consider insurance policies like life and health insurance to protect yourself and your family. 

8. Reduce debt before retirement  

Aim to pay off high-interest debts, such as credit card balances and personal loans, before you retire. Entering retirement with minimal debt will reduce your financial stress and help you enjoy a more comfortable lifestyle. 

9. Consider working part-time during retirement  

If you’re concerned about your retirement income, consider working part-time or freelancing during your retirement years. This can provide additional income and help you stay active and engaged.  

10. Stay informed about pension regulations and changes  

Keep updated with any changes to pension regulations, tax laws and investment options that could impact your retirement planning. Staying informed will help you make better decisions and adapt your strategy accordingly. By following these steps, you can take control of your financial future and work towards a comfortable and fulfilling retirement. Starting early and staying consistent with your contributions and investments is vital to a successful pension plan. 

Do you need to get your retirement plans in order? 

We prioritise building personal connections with our clients, using our expertise to instil confidence in your financial decisions. We aim to help you enjoy life today while strategically planning for a secure tomorrow. Don’t hesitate to get in touch with us to discuss your plans.