Posted on: 18th December 2019
Looking towards your financial future should always includeand understanding knowing why you need financial planning. Chances are you already part of a scheme at your place of work, but what else do you have in place? Make 2020 the year of pension and financial planning resolutions with this handy guide!
and financial planning: It’s never too late
It is never too late for you to begin saving towards your pensions, and it is likely you are already part of a workplace pension. These contributions will come directly out of your salary, so you won’t even notice the investments!
Your employer will also put money in, and you will receive tax relief on what you save too. This is normally based on your current rate of income tax. However, it is important to remember that not all pensions work the same when it comes to tax relief. We recommend you speak with your provider to see how yours works.
Paying in extra
If you wish, you can pay in more of your money. In fact, some employers may even pay more in if you choose to do this. It may seem like a biggerright now, but your future self will certainly thank you for it! Checking your pension online to see how well it performs can show you whether it is invested how you want it to be.
De-clutter your past pensions
There was once a time where your first job would be your job for life. You would have a single pension plan that built up throughout your working life and would be enough to care for you when you retired.
However, times have changed. These days, job-hopping is a common occurrence for many professionals, with figures suggesting that millennials switch jobs every four years. If you have jumped from job to job over the years, you will have likely built up small pension pots here and there.
The good news here is that you may have accumulated quite a bit of cash over the years! Therefore, it is worth tracking down as many as you can by contacting your previous employers and gathering up-to-date statements.
Condense your investments
If you do have numerous pensions, you may want to consider making things easier by transferring your collected pots into a single pension plan. This means you will only have to deal with one pension provider, single set of charges and the ability to keep a close eye on how it performs.
This may not be the best choice for everyone as your older pensions may have benefits that cannot be found elsewhere. If these benefits are important to you, it could be worth keeping those particular investments where they are. However, we recommend seeking financial advice if you are unsure.
Find yourself an IFA
The smartest way to stretch your investments is to seek independent financial advice. If you would like to prepare your savings for an enjoyable financial future, look no further than . Get in touch to learn more about our services.