If you want to control when to retire, you need to make your own retirement plan as soon as possible. If not, you may not be able to decide the time to retire successfully. In order to plan your retirement in the best possible way, it’s necessary to have into consideration these 6 things:
1. Your goals
Keep in mind when you want to retire, what you want to do in your retirement, and the type of expenses that will be necessary to cover. This will help you to set your goals and a plan to help you achieve them successfully.
2. Your money
Investing your money wisely will get you closer to achieving to accomplish your retirement plan. In this sense, saving money regularly must be one of your priorities. But you may also try to diversify across different asset classes, try not to pay high charges that affect the value of your savings and avoid investments like the ‘flavour of the month’ ones.
3. The pension
If you have had many different employers, by the moment your retire you’ll probably have multiple pension pots. That plus ISAs and other assets and income can make it hard to calculate what your savings are worth.
You need to have control of this matter in order to succeed with what you planned. So, a good option is to dig out your various policies because this will allow you to check their values one by one. You can also consider consolidating your various investments on an online investment platform, this way you’ll be able to view all of them in just one place.
4. Your retirement plan
When you’re able to check your investments regularly you’re also making sure that everything is going according to the retirement plan. If not, there’s always the possibility of falling short without noticing until it’s too late.
By checking regularly your investments, you can supervise their performance and track any problem that can come out. On the other hand, possible changes of circumstances, objectives, and legislation –taxes, for example – are motivation enough for make you want to review your retirement plan.
5. Tax wrappers
When you’re saving for the long-term, the first port of call may be the tax benefits of pensions and ISAs. So it’s important to consider joining your employer’s pension scheme. Why? Well, it’s possible that your employer matches your own contribution.
6. Finance advice
One option you should always take into consideration is getting professional finance advice. This is particularly helpful when it comes to reviewing your retirement plans, making sure they match your risk profile and knowing when and how to make any changes. As you get older, having and advisor on this matter is important, especially if you want to go into pension drawdown or even taking other lump sums out of your pension pot.
However, if you feel like you cannot pay for a service like this, you can always consult the ‘Pension Wise’ guidance service. This is a free impartial service of the government for anyone that wants to access to their pension savings.