Saving for Retirement: What Are the Risks?
When planning your finances for later life, it’s a good idea to take into account the potential risks involved. There are many things you will need to keep in mind to help you live the lifestyle you want during retirement.
Will you have enough money to last throughout your retirement?
When saving for retirement, you will need to consider the potential risk of running out of money. You may potentially outlive your savings, meaning you will need to plan ahead in order to ensure this doesn’t happen. It may be worth considering the type of pension scheme you are paying into to see whether this can be prevented, such as through final salary pensions.
What if my circumstances change?
As you get older, your circumstances may change. This may affect how much you’re spending each year and can mean that you may use up more of your pension sooner than you expected. Here, it’s important to account for potential changes in circumstances and allow for flexibility in your investments.
What about tax?
Although the pension freedoms mean that you are able to withdraw money from your pension pot as you wish, this does not come without tax. It may be worth planning the amount you wish to withdraw and calculating the potential tax liability to ensure you are making savings at every opportunity.
Talk to a financial adviser
If you’re looking for help investing for retirement and retirement financial planning advice, contact our local financial adviser team today. Please call on 01926 492406 or email us at email@example.com to make an appointment.