Are you sure you’re financially ready for retirement?
In the wake of Chancellor Jeremy Hunt’s Spring Budget back in March, reports show that of the more than 60% of pensioners who pay income tax, the majority will be £650 a year worse off by 20271
The challenge of saving for retirement has become more pronounced. The World Economic Forum advises individuals to save between 10 to 15% of their annual salary for retirement, a goal that is increasingly difficult to achieve with the current economic climate. With the cost of living on the upswing, reaching these recommended savings targets is becoming a more pressing concern for many.
Particularly after two decades of low inflation, many are unacquainted with the strategies needed to navigate these challenging times, so they can enjoy retirement without withdrawing more than they can afford, leading to the unsettling prospect of outliving savings, and the need to adjust one’s standard of living.
Did you know…
If someone is 50 years old today and currently needs an income of £100,000 to support their lifestyle, in 15 years’ time they will need an income of £180,000 to maintain a similar lifestyle – a rise of 80%2.
DOWNLOAD THE REPORT NOW – FUTURE PROOF YOUR RETIREMENT | QUILTER CHEVIOT
How can I avoid the financial risks of retirement?
Boost contributions to combat inflation
The freeze on tax allowances means a heavier tax burden in an inflationary environment, making the tax relief on pension contributions even more valuable.
Maximise relevant tax allowances
Higher-rate taxpayers often miss out on significant tax relief. Our financial planners specialize in maximizing these allowances, tailoring a retirement income strategy to your needs.
Use tax-free savings first
The longer you can hold off from using your pension, the better. Drawing from tax-free savings like ISAs first allows your pension investments more time to outpace inflation and aids in inheritance tax strategies.
Financial concerns when it comes to retirement are common, but you don’t have to face them alone. At Quilter Cheviot, our expert Financial Planners are dedicated to helping you protect and grow your retirement funds. From developing clear cashflow models that help you evade financial burdens, to a clear retirement income strategy, they work closely with you to understand your unique needs and desires, crafting personalised financial plans that enable you to live the lifestyle you envision, both before and after retirement.
Want to find out a little more?
To take the first step towards a secure and prosperous retirement plan, our Financial Planners have prepared an informative retirement report. It covers the effects of inflation, the infamous 4% rule, and dispels common retirement myths, providing a comprehensive guide to ensure comfort in your later years.
DOWNLOAD THE REPORT NOW – FUTURE PROOF YOUR RETIREMENT | QUILTER CHEVIOT
For more information or to schedule a free consultation with a Quilter Cheviot Financial Planner, please call 0800 032 1650
Disclaimers:
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited 30/05/2024
The value of pensions & investments and the income they produce can fall as well as rise. You may get back less than you invested.
For ISA’s Investors do not pay any personal tax on income or gains but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA manager.
All references to clients’ examples in this article are fictitious.
Tax treatment varies according to individual circumstances and is subject to change.
Quilter Cheviot Financial Planning is a trading name of Quilter Private Client Advisers Limited which is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.
Registered in England and Wales. Registered number: 06201261, registered address: Senator House, 85 Queen Victoria Street, London, EC4V 4AB.
Quilter Financial Services Limited and Quilter Mortgage Planning Limited is entered on the FCA register (https://register.fca.org.uk/s/) under reference 440703 and 440718. Trusts, Estate planning, some Buy to Let Mortgage, Taxation and Inheritance Tax Advice are not regulated by the Financial Conduct Authority.
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Author: Jo-Ann Welman, Financial Planner at Quilter Cheviot Financial Planning
Sources:
1 https://www.bbc.co.uk/news/business-68502297#:~:text=The%20IFS%20says%20most%20tax,cost%2Dof%2Dliving%20payments
2 https://www.quiltercheviot.com/siteassets/documents-financial-planning/future-proof-your-retirement-march-2024.pdf?memberurlid=2A59168621671P4179
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