Is this how you see yourself in retirement?

You may plan to travel the world or just spend your time with your grandchildren. However you want your retirement to look like you should start planning for it today.

You could be enjoying retirement for longer than you think, imagine you had 25 years after retirement.

Think back to Italia ’90, how you would fare if you received your last payslip that June? Imagine you had to live off your savings right up to now? Scary thought, but it need not be if you start planning for retirement today. A little planning and financial advice today will make a huge difference to your future plans.

By 2050 it is predicted that there will be less than two people working for every one retired person and that is surely going to impact on the state pension. Even at the moment it is worth €1,000 per month which can be a significant change from the full monthly salary you are used to.

While you may plan to retire at 65 to start improving your golf handicap, if this is after 2028 you will be at least 68 before you qualify for the state pension. How will you provide for yourself and your partner during those few years?

So here are five key steps to a better retirement

1.  Don’t Delay! Start your retirement plan today.

If you start early you can get into the habit of saving, the earlier you start the more comfortable your retirement is likely to be.

2.  Work out how much you should be saving.

Using our handy retirement income calculator  you can quickly work out what you may need to start putting away for your retirement.

3.  Earn Tax Breaks as you Save

To encourage us to save for our future, valuable support from the government in the form of tax relief is one of the most compelling reasons to save through a pension. Every contribution you make receives tax at a rate of 20% or 40% depending on the rate of income tax you pay.

4.  Investing in your pension

Any contributions you make will be invested in a fund and the rate of risk you are prepared to take is completely up to you. An expert such as a financial broker will be able to work out what investment choice might best suit you.

5.  Make sure your pension can change with you.

Setting up a pension is the first step of the journey, it could last for 40 years and as you change career you want to ensure that your pension can move with you. You need flexibility to increase, decrease or even take a break from payments if you want to.

Start planning for your retirement today, speak to Ark Finance who will give you independent expert advice on a pension that will suit you.