Want to retire early? Here are our 5 top tips!
- Know what you spend! The key to early retirement is knowing your expenditure inside out. If you are aware of your spending habits by being clear on how much you spend day to day it is much easier to work out if your pension is enough to retire on.
- Don’t underestimate your State Pension! Although it won’t kick in until later, don’t underestimate its value. If you know how much your State Pension is, and when you will get it, you can then front load income from your personal pension to meet your needs in the earlier years of retirement.
- Take advantage of flexibility! Traditional methods of drawing income from your pension are rigid in structure. This can be a disadvantage when retiring early. You could consider transferring your final salary scheme or avoid buying an annuity. This can mean less certainty of income, but it increases your flexibility.
- Look at the bigger picture! Early retirement usually relies on much more than your personal pension. It is vital an overall view is taken and you should consider paying down debt and making non-pension savings to help bring forward your retirement. Your wider family circumstances also need to be considered, such as your spouse and their working situation, when children will finish university and any inheritance you maybe receive in the future.
- Get a financial planner! It is essential to plan and reviewregularly. An annual review will ensure you are on course to retire at the ageyou want and highlight the changes you need to make if you are not. A goodfinancial planner will help you understand the reality of your objectives andassist you in implementing your financial plan.
Your pension plan should be as individual as you are, contact our experts by calling us on 01282 452255 for a no obligation pension review – https://www.financialaffairs.co.uk/confused-about-your-pension/