Retirement Planning Advice

Marco's Blog

Are you after truly Independent Retirement Planning Advice in London? Would you prefer to receive tailored advice with ongoing service, rather than simply being sold a product? We can help!

You can contact us for a free consultation to discuss your Retirement Planning needs. We will review your existing situation and explain how advice in this area can really add value.

Retirement Planning Advice

Retirement Planning Advice can take many forms but should always involve a shortfall analysis at the outset. You need a target to aim for. What sort of level on income in today's terms would be appropriate for you to have a comfortable retirement? You will need to make some assumptions about your anticipated expenditure in retirement.

You should then factor in how inflation will erode the value of money over time. You may decide that matching inflation is not enough, as you may like to keep up with average purchasing power. So liking to National Average Earnings increases rather than inflation maybe more appropriate.

If you have some existing pension benefits or other planning in place, you will be able to make projections to assess what level of income is likely to be derived. You may have rental property or other investments that will also generate income and this can be factored in too.

Having worked out the income shortfall at retirement, you can then calculate the fund size needed to generate the required level of income. This can be done by assessing expected annuity returns or bond yields.

Once you have an idea of the level of fund required, you will be in position to calculate the level of contributions needed to achieve this by making assumptions about the expected grow given your attitude to risk. High levels of contributions may not be possible at the outset, but you will know what needs to be done. You will also be able to contribute lump sums and you can increase the regular contributions after pay rises.