Preparing for your retirement, even when it seems a long way off, is a crucial part of financial planning.
At some point we are all likely to want to cease work but maintain a good standard of living. It is therefore important to have continued income from somewhere. The basic rate pension is unlikely to provide you with the level of income you would wish.
You may be part of a company pension scheme which will contribute to this income stream, however you may not be a member of this scheme, or this scheme may not provide the level of income stream you desire to support your life style.
The onus is on you to build up a large savings pot which can deliver your desired income stream and a personal pension can be an effective way for you to save in a tax efficient way.
However pensions are complex and now with the greater flexibility in how to use our pensions it is advisable that you seek professional advice.
You may be in the situation where you have a number of pensions from previous employers or more than one personal pension. To ensure that these pensions are still delivering against your investment goals it is important to review them. This will determine whether they are still appropriate to your needs or whether they need to be switched or transferred. This realignment could reduce your risk whilst saving you money.
Our advisers at TFA are well placed to assist you with your financial planning and in understanding what role a personal pension can play within your overall investment strategy or whether your existing pensions needs to be realigned.