Top tips for getting your retirement into ‘top gear’

We’ve pulled together some top tips to help you get to your desired retirement destination.

1. Assess your current pension situation

Do you have up-to-date information on all your pension plans, and do the administrators of these plans have your correct personal information? For example, it’s easy to miss sending an insurance company details of a change of address if you’ve moved house frequently over the years.

You may even be wondering if you’re entitled to a pension with a previous employer from years ago. This is where the Government’s Pension Tracing Service can come in handy.

2. Set clear retirement goals

Once you’ve collected all the information you can for your pension plans – including your State Pension – you need to review it against your retirement goals. When are you expecting to retire? Are you planning to cut down on your hours?  

If you aren’t sure how to go about making a plan, a good way is to estimate how much money you'll need after tax for a comfortable retirement. Consider factors like living expenses, healthcare costs, travel plans, and any debts you may have that you want to pay off. 

3. Maximise your retirement contributions

It’s more than likely that you’ll discover a shortfall between your existing savings and your estimated income requirements. If that’s the case, you should, if possible, look to increase your regular pension contributions – supplemented by a one-off payment each tax year if your earnings fluctuate. 

If you’re employed, check if you have access to any company pensions and that you’re making the most of your contributions and your employer’s matching terms. If you’re not employed, then talk to us about opening up a personal pension to make the most of the tax benefits that pensions provide or open a plan online.

You should be aware that the value of investments may rise or fall and you may get back less than you invested.

The tax treatment of pensions depends on individual circumstances and may change in the future.

4. Consider your investments carefully

Avoid investing in just one asset such as property. Those who have a second property often think of it as a retirement nest egg, and feel it meets their aspirations better, as ‘bricks and mortar’ are more tangible than liquid assets such as stocks and shares. However, this means all your investment risks are concentrated into one asset class. Whereas, if you invest in a wider range of assets, such as stocks and bonds, this helps to spread the risk.

Think about adopting a lower risk strategy as you get closer to retirement, by moving your investments into safer options that are less likely to be impacted by downturns in the market.

5. Pay off debt

Credit cards and personal loans often come with high interest rates, so it’s worth paying these off as soon as you can. This, in turn, will give you more money to put into investments, which means your money could be working harder for you. 

6. Seek financial advice

Consider if you need personalised financial advice from one of our Financial Advisers to feel confident you’ve done your best in your current situation. Your adviser can formulate a plan to help achieve your goals, which might include financial security for any family members, withdrawing money in a tax-efficient way and avoiding any costly, ill-informed decisions.

NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers. When you contact us, we'll explain the advice services we offer and the charges.

Financial advice is provided by NFU Mutual Select Investments Limited.

Another option is to book an appointment with Pension Wise. This service offers free impartial pensions guidance to people over 50. The appointment can last up to 60 minutes, and you’ll end up with a document summarising your pension options and next steps.

Finally, your savings and investments need to be reviewed regularly to make sure you’re progressing towards your retirement goals. Make adjustments to your plan based on any changes in your income, expenses, the economy or your financial situation.

What's next?

You can give us a call on:

0800 622 323

A member of the team will be able to support you in arranging an appointment with an NFU Mutual Financial Adviser to discuss your individual needs.