Many people seem to treat retirement planning like a game of “Pin the Tail on the Donkey” – you know the one where you’re blindfolded and must stick a tail on the right part of a donkey’s anatomy?
Great fun when you’re twelve years’ old, but not much of a financial strategy for ensuring you have adequate income in retirement.
It’s “Tax Return Season” and at this time of year, too many people are blindfolded by the benefits of tax relief on their contributions and do not pay enough attention to the ultimate prize, their total fund at retirement.
Proper retirement planning requires establishing the level of income, and therefore the size of fund, you will need to maintain your standard of living once you stop work. Once you know this figure, you can work out how much you need to contribute to your fund each month or year and how much investment risk you need to accept to achieve your target. Taking too much, or not enough risk with your pension could have a material and long lasting impact on your lifestyle post retirement.
Retirement planning is an important process and mistakes can prove to be expensive. Professional advice costs money, but good advice is worth every penny.
- If your strategy is not working, you need to change it
- If you do not know what your targeted fund is, you need an advisor
- If you do not know what income you will need in retirement, you need MoneyCoach
Talk to one of our advisors today on 1890 428 343 or email us at firstname.lastname@example.org