DO I REALLY NEED A PENSION?
It’s a question that undoubtedly divides people. Those in favour are passionate about the importance of long-term planning and saving for your retirement, while others just can’t see the benefits. It’s easy to take the view that the more you save now, the less you have available to you immediately, but is that a reason to put your head in the sand, live only for the moment and potentially find yourself in real financial trouble in the future?
Will failing to save now, mean that your later years are spent in worry, debt and an inability to fulfil the lifestyle goals you had for your future?
WHAT WILL HAPPEN IF I DON’T HAVE A PENSION?
You don’t know, and that’s the scary thing. Sure, you COULD win the lottery, or you COULD inherit a lump sum from a distant relative, but none of these things are certain. The only truly reliable way to determine what you will have to spend in your future is by taking control of it and planning accordingly.
You might not end up destitute. You might still be able to go on holidays or travel to that part of the world that you dreamt about throughout your working life. You might be perfectly fine.
…but you might not.
Is it really worth the risk?
HOW MUCH DO I HAVE TO SAVE?
What everyone wants to know, is how much they should be saving. There’s no magic number though as it really does depend on the lifestyle you would like during your retirement. It may seem so far away that it’s not really something you have considered, but that’s OK. We can sit down with you, address the reality of your situation and take you through our lifestyle financial planning process to help highlight where you want to go, the potential pitfalls you could face in getting there and which will ultimately help us to develop an advanced financial forecast to answer the very question – “How much do I have to save?”
WHAT IF I CAN’T AFFORD TO SAVE?
The fact of the matter is, nearly everyone can afford to save – even those who think they can’t. You might have to re-evaluate how much you would like to save – but saving anything is far better than saving nothing at all. If you don’t feel on top of your finances we can go through everything in detail. It can be difficult to be totally objective when it comes to your own spending, but we know exactly what to look for to see where and how your cash flow could be improved, where you may be able to pay less interest in loan repayments or debts, and where you might be able to make a few changes to enable you to save for your retirement after all.
ARE THERE ANY ALTERNATIVES TO A PENSION?
There are, and some of these might be a very viable alternative for you. You might choose to invest in property, maximise your ISA savings or even invest in stocks and shares, but each of these options should be entered with full awareness of the pros and cons. For many people, the simplest and most guaranteed way to plan for your future still remains to invest in a pension and even if you decide not to, we always suggest that you look at your options in a serious and objective way.
To speak to us about saving for a pension, or investing for your future by other means, please get in touch.
This article does not constitute financial advice and should not be construed as such.