Financial empowerment: Plan for retirement control

Building financial empowerment is all about the confidence that comes from knowing you are in control of your finances. As more savers risk falling behind on their retirement goals, proactive pension saving is in the spotlight.

RETIREMENT PLAN

As cost-of-living pressures weigh on many households, building a retirement fund has understandably taken a back seat for many savers. According to a new survey by Scottish Widows, 39% of Brits are not on track for a ‘minimum retirement lifestyle.' That number is up from 35% in 2023.

FEEL EMPOWERED

The first step to taking control of your pension goals is to understand how much you will need in your retirement. As a general guide, the Pension and Lifetime Savings Association (PLSA) estimates that a single person would need £13,400 a year for a minimum lifestyle standard in retirement (£21,600 for a couple). Note that this is for people living outside London and excludes housing costs. For a moderate lifestyle, these figures increase to £31,700 (single person) and £43,900 per annum (couple).

KNOW YOUR OPTIONS

Effective planning, starting early and contributing regularly allows your pension pot to build over time. For employees, saving into a defined contribution pension can help your pension pot build up, as your employer also makes contributions. It’s worth checking if you could pay more than the minimum amount. Self-employed workers have fewer options, which is why two in five say they aren’t saving enough for retirement, and 23% are not saving anything at all.

Personal pensions are an option for everyone, and like all pensions, offer tax relief, long-term savings growth potential, financial security in retirement and control over investment choices.

TAKE THE FIRST STEP

Feeling empowered to make informed decisions leads to proactive steps towards a financially resilient future. While challenges remain, your retirement is too important to neglect – it’s time to take control and feel empowered! You can’t afford not to.

Find out more about our approach to retirement planning or schedule a free consultation with an expert.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up.