TOP TIPS FOR RETIREMENT PLANNING

Start planning your retirement and look into your likely income when you are in your 50s. That way you can ensure you’re on track for the income you think you’ll need, and if not you can try to put a bit more away.

Work out the income you’re likely to receive when you retire. Get a state pension statement via gov.uk/checkstate-pension or you can call the Future Pension Centre on 0345 3000 168. Contact the pension firms you have savings with for a statement of your fund value. And check ISAs or other longterm savings and investments you have.

Work out a budget of your likely bills in retirement. Be realistic and ensure you include yearly costs and other non-essentials.

Make plans to clear debts as a priority. Expensive repayments will eat into pension incomes and could leave you struggling to make ends meet.

If you are thinking of generating an income by buying an annuity with your pension savings, never accept the offer you get from the pension firm you have saved up with. Compare the market to ensure you find the highest income. Shopping around could boost it by as much as 30% or even more.

Think about how long you expect your income and pension to last in retirement. How much of this is guaranteed (state pension, final salary work pension or annuity income), compared to other savings you may have (such as ISAs or a drawdown pension pot).

If your income falls short of your expenditure, consider other assets including savings and your property which could bridge the gap.

Seek expert help before making any decisions on your pension savings. Book your free Pension Wise appointment, so you know the basics and your options, via pensionwise.gov.uk or call 0800 138 3944. Speak to an independent financial adviser to go through your options and how each will affect your longterm finances. Find one near you via unbiased.co.uk.