When you’re planning for retirement, you may have a list of activities and dreams you wish to achieve when you stop working. Be it a round-the-world trip, or simply spending some quality time with your loved ones, this next phase of your life is certainly one to look forward to.
However, while retirement is undoubtedly something to await with bated breath, you may be anxious about the prospect, feeling somewhat unprepared. If you feel this way, then you’re not alone – City A.M. revealed that 58% of adults over 40 said they were anxious about the prospect of retiring.
Of those, nearly 40% said they were concerned that they might not have enough saved to see them through retirement, while 33% were worried about not being able to afford leisure activities when they stop working.
Thankfully, financial advice is a practical way to ensure you feel more confident about the future. Continue reading to discover how a financial planner could dispel any anxiety you have about retirement, ensuring that you’re excited about starting the next phase of your life.
Financial advice can help you better understand complex pension information
There’s a chance that when faced with information regarding your pension and retirement, you may feel somewhat overwhelmed.
This is seemingly quite common, as a study from Standard Life found that half of UK consumers believe that pension and retirement information is overwhelming. Furthermore, 41% don’t know what to do with the information once they have it.
This highlights the fact that even if you obtain the correct information about your pension, there may be significant gaps in your knowledge since you don’t understand how it affects your personal retirement plans.
As such, you may struggle to make informed decisions about your pension and remain unsure about achieving the lifestyle you desire when you stop working.
Thankfully, financial advice could help you feel more informed and confident about your pension.
In fact, the above study revealed that 83% of people believe that financial advisers are a good source of information, and can often act as a “translator”, taking all the complex information and presenting it in a simple and comprehensive way.
This could, in turn, help you feel less anxious about your retirement, ensuring you have a foundation of knowledge to help you prepare for the future.
Financial planners can help you realise how much you need to save
When you’re seeking information about your pension and retirement to help reinforce your confidence, some of this may include:
- How much is in your pot
- How much you’ll get from your pension
- Whether you’re contributing enough.
Though, according to MoneyAge, over half of Brits don’t know how much they have in their pensions. Moreover, those closer to retirement are seemingly less likely to be pension-aware, as 57% of 55- to 64-year-olds don’t know how much they have saved compared to 51% of those aged 25 to 34.
Many people also had gaps in their knowledge about how much they’d likely need for a comfortable retirement. Indeed, 45% thought they would need £200,000, though the figure is closer to £466,600 for someone earning £35,000, assuming they draw two-thirds of their current annual income during retirement.
If you are unsure how much you’d realistically need to save for retirement, or how much you have in your pension pot already, a financial planner could guide you to clarity.
They could help you understand how much you need to save by discussing your personal goals and the lifestyle you wish to achieve in retirement. Then, they can help you realise how much you need to save to fund that lifestyle and create an in-depth plan to get you there.
When you have a specific goal to work towards and a plan in place to help you get there, this could help dispel any anxiety you have surrounding your future.
Having a planner in your corner can provide valuable reassurance
As you can see, financial planners can give you helpful advice to help you realise how much you need to save, and can even help you understand complex information. Though, they don’t just give you advice, they can also give you the much-needed encouragement that your future is secure.
Indeed, FTAdviser reports that 66% of advisers believe their main role is to provide reassurance and instil confidence in their clients.
This is especially useful when the cost of living is still high, as you may naturally be concerned about how your wealth would be affected, and whether this could derail your retirement plans.
Meanwhile, your financial adviser could help you feel less worried about your future financial stability. In fact, the above source shows that 46% of consumers who didn’t take advice were extremely or very concerned about costs, compared to just 26% of those who worked with an adviser.
Get in touch
If you’d like our expert advice and reassurance about your retirement, then get in touch with us today.
Email firstname.lastname@example.org or call 0113 262 1242 to speak to an experienced planner.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.