10 Steps to getting the most from your money

  1. Get independent financial advice.
  2. Create achievable goals.
  3. Plan for your retirement.
  4. Plan your income and expenditure.
  5. Manage your savings.
  6. Get the most from your pension.
  7. Get the most from your pension.
  8. Pass on your wealth.
  9. Regularly review your financial goals.
  10. Enjoy your retirement!

If you’re coming up to retirement, it’s important to start planning ahead for how you’ll make your money last and how you’ll live your life once that all important retirement date arrives.

What should you do to plan for your retirement, and what are the best ways you can make your money last out your lifetime? We’ve created our very own ‘Top of The Pops’ Chart – here’s our Top 10 Tips to keep you wealthy (and hopefully healthy!) in your retirement.

1. Get independent financial advice.

People often spend their working life paying into their pension pots, but then often make the costliest mistake of all when they go to access their pension funds by failing to seek independent advice.

When the new pension rules came into effect in April 2015 they presented many different options in terms of turning your pension into an income. But as you will be aware, by making the wrong choice you could significantly reduce your retirement income.

So it is really important that you ensure you select the best possible type of income to suit your needs by speaking to a knowledgeable, qualified advisor.

It’s important that you’re not afraid to approach us, no matter your circumstances we can help you out. Give us a call, our advisers are experienced in all areas of wealth management and retirement planning advice.

2. Create achievable goals.

A well-built financial plan plays an essential element in securing your future. Outlining and managing financial goals is a fundamental part of this. If it’s currently unachievable or unrealistic to save a given amount each month, don’t have it in your plan – you will put yourself under stress by trying to achieve something unattainable.

When developing a realistic, achievable, financial plan you must consider existing finances along with many other aspects of your financial history and lifestyle; it is a multi-step process that examines all relevant angles and issues. This is one area we can help you with as we have many years of experience of helping people out in this manner.

3. Plan for your retirement.

Make sure you fully understand your options, and find out what basic state pension you're entitled to.

You may wish to consider a phased retirement – say going part-time initially and then reducing your hours / days gradually over a period of time.

Understand your tax situation and the implications of all your decisions – Using pensions wisely presents a great tax planning opportunity, but only if you make the correct decisions based on your individual circumstances.

4. Plan your income and expenditure.

If you're trying to keep an eye on your finances and keep control of your spending, household budget planning is a crucial part of the process. Planning a clear schedule of spending really helps you to take control of your finances and gain confidence for the future.

Check how much money you'll need when you retire! Look carefully at your monthly spending and be truthful – if you have pizza delivered once a month, for example, make sure that’s factored in. It’s important that your plan truthfully reflects your lifestyle and that you are realistic when considering the lifestyle you envisage maintaining.

It's very easy to forget about all those little extras that seem insignificant at the time, but when added up can make quite a difference!

5. Manage your savings.

After you have a budget in place, it is time to focus on your savings. The easiest way to manage savings is to automate the process. Work with your financial planner to establish how much money you should be saving for the future;  It may be less than you think!

Taking the time to manage your money better can pay off.  A good financial planning firm will often give you access to a client portal to give you sight of all your savings, investments, pensions in one easy to track place.

6. Get the most from your pension.

Monitor your pension – by keeping a regular eye on a pension, you can help ensure it is on course to provide the retirement income needed.

Top up your pensions whenever and wherever possible. You can top up your company or personal pensions with something called Additional Voluntary Fund Contributions (AVCS). This can be a simple and effective way to cut your tax bill, and increase your retirement fund – take advice from our experts.  This can be a complicated calculation.

Build up your state pension - people often forget that you don't automatically qualify for the full basic state pension, but that you must build it up by making national insurance contributions on your earnings.  Requesting a “state pension forecast” in the years leading up to your retirement is definitely a good idea.

7. Protect your family and your estate.

There are many things to be considered when looking at protecting both your family and your home. Understanding, qualifying and potentially mitigating your Inheritance tax, income tax and capital gains tax liabilities is a fantastic (and perfectly legal!) way once strengthening your financial future.  This is a highly complex area of finance and should be tackled using chartered financial planners, chartered accountants and solicitors.  Speak to your financial planner for more information.

An often overlooked area of financial planning is ensuring that you have adequate protection in the event of an illness and the subsequent loss of income you may suffer.  The impact of ill-health can be devastating to you and your family.  Your financial planner will be able to tell you the levels and types of cover you require and be able search the internet to establish which is the best possible insure to provide you with cover.

8. Pass on your wealth.

Having worked hard to build up your estate, it is vital that you have an effective estate planning strategy in place, that way you can pass on that wealth to the people you care about and minimise the amount of tax they will ultimately pay.

Having an effective and tailored estate planning strategy in place is vital, so you can pass on that wealth to the people you care about.

As with any plan, the sooner you start the easier it will be to enact!

9. Regularly review your financial goals.

As your situation in life changes, your financial plan also requires regular reviewing and change. In order to make sure your goals are still being met and on target, it’s important to regularly meet with your financial advisor. For example, we sit down with our clients every year to review their financial plan and ensure every possible angle has been covered.

10. Enjoy your retirement!

A good financial adviser will help you to save money; A great financial planner will also help you to spend it.

Start planning your future. Speak to us today.

Contact Us

Seventy Financial Planning
The Apple Store, Haggs Farm,
Haggs Road, Follifoot, Harrogate,
HG3 1EQ

01423 611004

[email protected]

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