How To Check You Are Saving
Enough For Your Retirement
Before It’s Too Late!

As a Financial adviser one of the biggest fears for many clients was not having enough income in retirement.

You can picture it now, spending all your life working hard and paying in to your pension, but it’s not enough and it’s too late to make a difference!

Your dream holiday or car and a retirement full of little luxuries are not the reality for many people retiring today.

Instead the hard truth is the need to continue to work part-time and living your “Golden Years” on a shoestring budget.

Here is a step-by-step guide to finding out what your likely retirement income could be using the Money Advice Service’s free pension calculator.

Step 1: Find All Of Your Pensions

First of all you will need to gather all of the pensions you have, including previous and current workplace schemes and/or any personal pensions. You should then contact each provider to get an up-to-date valuation of your pension fund and take a note of the amount.

If you have lost your pension plan information, you can contact the Pension Tracing Service on 0800 731 0193 to help you find it. You will need to have the name of the employer or pension provider to use the service.

Step 2: The Money Advice Service – Free Calculator

Go to www.moneyadviceservice.org.uk/en/tools/pension-calculator and click on the Start the Pension calculator.

Follow the instructions as you go through each step. At step 5 you will need to input the current values of each pension you have.

Step 3: How To Make Up The Shortfall On Your Retirement Income  

Hopefully you are on track to retire with enough retirement savings. If not, don’t despair, here is how you workout the shortfall and bridge the gap.

You can adjust your results on the pension calculator at step 5. For example, if you are able to afford £100 a month, you should multiply this by 12, which would give you £1,200 and add this to ‘Your Gross Contributions’.

If the additional contribution doesn’t bridge the gap to reach the desired retirement income, you still have a few more options. You may have to retire later or sacrifice some or all of the tax-free cash entitlement, up to 25% of the value of your pension pot.

If you are still short on reaching your pension income goal and this is really important to you, another option is to make cut backs in other areas of your life. For example, if you made a packed lunch instead of eating out or reduce the amount of drinks on the go. You could save the difference into your pension each month.

Step 4: What To Do If You Are Still Struggling To Save Enough Money

Unfortunately for many of us, we will have to lower our expectations on what we receive in income when we retire. There may not be enough time to save or there isn’t the available budget each month to pay in to your pension.

A Financial Adviser can help you put together a financial plan to show you how you could give yourself the best chance of reaching your financial goal for retirement.

There may be other areas where you could re-allocate your budget that you hadn’t considered.

You could look at better performing funds and find out if you have the appetite to take more investment risk.

By working with a Financial Adviser you will have professional help, a recommendation on what to do and a plan of action. It is often said, “If you fail to plan, you plan to fail”.

You can search for an adviser by using a free online directory.

Go to comparefinancialadvisers.co.uk, which has a list of qualified financial advisers in your area.ing hard and paying in to your pension, but it’s not enough and it’s too late to make a difference!

Your dream holiday or car and a retirement full of little luxuries are not the reality for many people retiring today.

Instead the hard truth is the need to continue to work part-time and living your “Golden Years” on a shoestring budget.

Here is a step-by-step guide to finding out what your likely retirement income could be using the Money Advice Service’s free pension calculator

Step 1: Find All Of Your Pensions

First of all you will need to gather all of the pensions you have, including previous and current workplace schemes and/or any personal pensions. You should then contact each provider to get an up-to-date valuation of your pension fund and take a note of the amount.

If you have lost your pension plan information, you can contact the Pension Tracing Service on 0800 731 0193 to help you find it. You will need to have the name of the employer or pension provider to use the service.

Step 2: The Money Advice Service – Free Calculator

Go to www.moneyadviceservice.org.uk/en/tools/pension-calculator and click on the Start the Pension calculator.

Follow the instructions as you go through each step. At step 5 you will need to input the current values of each pension you have.

Step 3: How To Make Up The Shortfall On Your Retirement Income  

Hopefully you are on track to retire with enough retirement savings. If not, don’t despair, here is how you workout the shortfall and bridge the gap.

You can adjust your results on the pension calculator at step 5. For example, if you are able to afford £100 a month, you should multiply this by 12, which would give you £1,200 and add this to ‘Your Gross Contributions’.

If the additional contribution doesn’t bridge the gap to reach the desired retirement income, you still have a few more options. You may have to retire later or sacrifice some or all of the tax-free cash entitlement, up to 25% of the value of your pension pot.

If you are still short on reaching your pension income goal and this is really important to you, another option is to make cut backs in other areas of your life. For example, if you made a packed lunch instead of eating out or reduce the amount of drinks on the go. You could save the difference into your pension each month.

Step 4: What To Do If You Are Still Struggling To Save Enough Money

Unfortunately for many of us, we will have to lower our expectations on what we receive in income when we retire. There may not be enough time to save or there isn’t the available budget each month to pay in to your pension.

A Financial adviser can help you put together a financial plan to show you how you could give yourself the best chance of reaching your financial goal for retirement.

There may be other areas where you could re-allocate your budget that you hadn’t considered.

You could look at better performing funds and find out if you have the appetite to take more investment risk.

By working with a Financial adviser you will have professional help, a recommendation on what to do and a plan of action. It is often said, “If you fail to plan, you plan to fail”.

You can search for an adviser by using a free online directory.

Go to comparefinancialadvisers.co.uk, which has a list of qualified financial advisers in your area.

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