How to Fund Your Dream Retirement

Everyone has their own goals in life, and this is no different in retirement. However, the lifestyle you plan to achieve and the luxuries you hope to enjoy later in life heavily depend on your available income in retirement. Many people approach saving for retirement wondering ‘How much should I save?’, but instead it is important to start by considering the question ‘How much will my dream retirement lifestyle cost?’

The costs associated with retirement can vary from person to person, depending on your individual needs, where you live, and what existing provisions, if any, you already have in place.

The key to retirement planning is therefore understanding your unique circumstances and by working with your trusted Independent Financial Adviser, they can use this information to forecast the level of income that may be required to fund your retirement lifestyle, and the necessary steps to help you achieve this.

Most people who pay National Insurance through their working lives will be eligible for the State Pension but, in most circumstances, it is unlikely someone could rely on this income alone in retirement. Many people will plan to meet their retirement needs based solely on one income source in addition to their State Pension, such as income from a rental property portfolio, investment trust income, or business-related proceeds to name a few.

However, it could be seen as risky to rely on just one of these income sources. Instead, addressing your retirement plans early and considering different income streams can make a big difference in bringing your dream lifestyle in retirement that bit closer.

Investing into a pension is one of the most accessible routes for saving, and can prove to be very tax efficient for the majority of people. The government usually offers tax relief on the payments you make into a pension plan which are invested, meaning that your contributions have a better potential to grow and help you build up your pension savings.

For example, if you are a basic rate taxpayer, for every £100 saved into your pension plan the cost to you is only £80. This could effectively be even less if you are a higher, or an additional rate taxpayer. On top of this, if you have a workplace pension your employer will pay into it too and may even match payments up to a certain level. Therefore, the more you save into your workplace pension, the more potential added income you can receive from your employer.

All of these methods for saving and sources for income in retirement can have their benefits, however, it is important to find a solution tailored to your own retirement goals and current circumstances. If you require any advice or support with your pension or retirement plans, please do not hesitate to get in touch with one of our experienced Independent Financial Advisers today on 0117 450 1300.