Are my pension savings enough to retire?

Can I afford to retire, yet?

This is probably the question everyone wants answered. Is your retirement plan on track and are your savings realistic to your needs? Have you compared your existing savings to a target retirement?

It’s important to look forward, think about how much you spend and whether you have debts to repay at retirement. Your mortgage may need to be repaid, you need to use the pension lump sum allowance (PCLS) from your pension to repay it – but you’ll need to work out if that will be enough.

Can I afford to retire, yet?

It’s probably the question that pension advisers are asked the most. Usually in jest, people from age 40 tend to start to think about their retirement from work. The answer is always the same, “that depends on what you need”.

Use our online calculators to analyse your savings needs and the pension age you’re on track for.

In general terms, considering long-term growth of a balanced investment portfolio, you should achieve a net return of 3-4% per annum. This is less than most advisers will discuss, but conservative estimates are the key to a sensible retirement plan. So, for every £100,000 you have in your pension, you could safely generate £3-4,000 without too much concern over eroding the capital. Under good advice, you could take a more aggressive withdrawal strategy, targeting spending your capital rather than leaving a death benefit.

Will your pension savings meet your retirement goals?

A list of questions you should ask yourself to prepare your finances for retirement…

  • what will I get from the UK or other government state pension, and when will I be able to claim it?
  • what are my company pensions worth, and do they offer options for a lump sum, or death benefits?
  • will I need to repay any debt or need to plan for a lump sum expenditure?
  • will I have any other structured income for retirement, like property rent or savings/investment returns?
  • how much of the pension lump sum you I need?
  • will I need access to ad-hoc withdrawals in retirement, to gift to loved ones or for large purchases?
  • how will my financial lifestyle change and will my expenditure will reduce into my old age?
  • what will be your marginal rate of tax in retirement? how should retirement income fit for tax planning opportunties?
  • do I want to leave a death benefit for loved ones?

Pension News

Categories
Retiring Overseas
reviewmypensions

10 Tips for Retiring Abroad

Top tips for British expats retiring overseas Retiring outside of the UK is a dream for many. Perhaps you’re sick of the cold dark winters,

Read More »
Schemes in Deficit
reviewmypensions

Laura Ashley Pension Update

Important Update for Laura Ashley Pension Members It has been a difficult time for former employees of the famous home furnishings firm. Pension scheme members

Read More »
Purple book pension
Defined Benefit Pensions
reviewmypensions

The Purple Book 2020

The latest in defined benefit pension scheme statistics The Purple Book is a yearly publication of UK defined benefit scheme data. It offers a great

Read More »

Speak to a Professional

We introduce clients to regulated, professional and qualified advisers across the UK and internationally.

Our panel of adviser firms must undertake a comprehensive due diligence process. We only refer to firms with locally-appropriate regulation and insurance.

Ask us anything

didn't find what you are looking for?

search Our Site

About This Site

Whilst every care has been taken in the preparation of our website and publications, they are intended as a guide only. Readers are advised to seek professional regulated financial and tax advice before making any changes to their planning or investments. Our publications, including website and guides do not offer investment or pension advice and nothing in them should be construed as investment or financial advice. Our publications, including guides and website are not, and should not be seen as, a recommendation to use any particular investment or planning strategy.

You must carry out your own research before making any investment decision or change to your planning. The information published has been obtained from sources that we believe to be accurate. Although reasonable care has been taken, we cannot guarantee the accuracy or completeness of any information published. Articles and opinions published may be wrong and may change at any time. You must always carry out your own independent research and verify information and data you collect before making any financial decisions or planning changes.

Financial and pension planning is complex, and must be tailored to the individual client’s needs, objectives and circumstances. Teach Learn Resources Ltd do are not regulated by the Financial Conduct Authority and do not offer financial or tax advice. Our only business is to act as a professional introducer to regulated IFA firms worldwide. Contact us for more details about our panel of approved adviser firms and the regulation held in your jurisdiction.

Please see our Privacy & Terms for more information about the company, protection of your data and terms of use.

All content on this website and associated publications have been written by us and is the intellectual property of Teach Learn Resources Ltd. We take plagiarism seriously; our lawyers are watching.

Reviewmypensions.com is a trading style of Teach Learn Resources Limited. Teach Learn Resources Limited is registered in England and Wales company number 13349666. Registered Office 591 London Road, Cheam, Sutton, England SM3 9AG.

All rights Reserved