Retirement planning has evolved over the years in many ways – from the way technology has been used to improve the process, to more investors realising you don’t need to be approaching retirement to start planning.
With this being said, we thought it’d be useful to show the top five ways you can boost your retirement planning, to give you the best chance of achieving a comfortable retirement.
1. Modern wealth management
An online wealth management service can be a highly effective way to improve your retirement planning.
You can receive expert guidance from financial advisers who are experienced in various aspects of the financial sector.
They can conduct a full analysis of your income – including salary, assets, financial dependents, and more – to fully understand your current circumstance.
This analysis can help them make more accurate recommendations for your approach, so every decision you make is aligned with your unique financial situation and what you can realistically achieve.
2. Careful planning
We also recommend you conduct careful planning when building your wealth for retirement. This includes making sure you take into account every aspect of your retirement in your plan.
For example, you should outline each of your future goals in detail to help you establish the right steps to achieve them.
Ask yourself questions like – how much do you want in your pension pot or do you want to have a certain number of holidays each year when you retire?
You should also try to accurately determine how long your retirement will last and not underestimate the length, which can help you avoid growing insufficient funds in your pension.
By carefully thinking about these various aspects, you can build a comprehensive plan that provides the best chance of a successful financial outcome.
3. Diversified investments
Another way to boost your retirement planning is to diversify your investments to grow your pension pot.
For example, you can make contributions to your pension each year up to the maximum allowance – £60,000 as of the 2023/2024 tax year – whilst also investing in Individual Savings Accounts (ISAs). This can help you build a significant sum of tax-free money each year to withdraw when you retire.
Your adviser can help you choose the right portfolios to diversify your investments for maximum growth, whilst also protecting your wealth with the right risk levels for your situation.
4. Expert technology
With today’s technological advancements, you can now use online tools to make your retirement planning process more effective.
You can access an online platform that lets you track all your wealth in one place, whilst viewing all accounts and investments in one central platform, for increased visibility.
For more accurate future investment planning, you can adjust certain variables (such as amounts and timings of investments) to see how this could impact your wealth, to help you determine the most suitable risk levels, amounts and times to contribute, for example.
5. Continuous monitoring
To create the most successful retirement plan, it’s important to monitor your progress closely and make the right adjustments where needed.
This way, as your plan evolves and your circumstance changes, you can more effectively navigate impacts to your wealth. This can come in the form of changes to your income, movements in the market, tax rate changes, and more.
By keeping an eye on these factors, you can alter the necessary aspects of your plan to maintain the most effective route to your retirement goals.
Are you feeling ready to try any of these top methods, or maybe all of them?
Whatever you decide, make sure to carefully form your approach so that it’s accurately designed to meet your financial requirements.
If you’re unsure, financial advice is always available to help.
Please note, the value of your investments can go down as well as up.
