People surveyed for BlackRock’s Investor Pulse survey stated their biggest financial priority was ‘funding a comfortable retirement’. Yet many people spend more time planning their holiday than their own retirement. Perhaps because planning for retirement seems too complicated to think about?
We know that we want an active, comfortable retirement but often don’t know where to start the savings process. If confusion and a lack of understanding around your retirement needs has led you to put off planning and saving anything, you’re not alone. In fact over half of people in the UK are in the same position.
You can start now though. Planning will help you think about the changes you could make, and enable you to take steps in planning for a better future.
Step 1 – Target
Know what you need – set yourself a target.
The closer you are to retirement the more you are likely to know how much income you will need to cover your outgoings. If you have longer to go until retirement it is still good to have an idea of what you are aiming for and you can review this each year as you get closer.
Step 2 - Plan
Know what you already have
The second step is simple – understanding what you have already saved. Knowing what you already have will help you to understand how far you are towards your retirement target. If you have a lot of different pensions it may be worth considering bringing those all together into one account. Should you transfer?
If you have a BlackRock pension account you can access TargetPlan which includes the myPath tool. myPath is a retirement planner that will help you to work out how much annual income you may get in retirement. You can set your own target income to help you assess whether you are on track and if you need to take action..
Step 3 - Action
What you need to think about
- Are you paying in the right amount?
- Are you invested in the right kind of fund?
- When can you realistically retire?
Don’t put off planning for retirement. By following these simple steps and reviewing your retirement plan at least once a year you are planning for a better future.