Building a Solid Foundation for your Retirement

When building wealth for retirement, many investors wonder how they can best form a solid foundation for their approach.

Fortunately for you, there are many ways to structure your finances and help grow your savings towards a comfortable retirement.

Do you want to know what some of these methods are?

Here are some things to consider if you want to create the best possible chance for a successful financial outcome when you retire:

Are you consulting a financial expert?

This is potentially one of the most important questions to consider when saving for retirement.

Financial advisers come with a vast amount of experience in handling investors’ wealth and helping them achieve their financial goals.

Your adviser will take the time to fully understand your unique financial situation, including your income, assets, dependants, closeness to retirement, and future goals.

They can help you build a tailored plan that meets your specific requirements and helps you maintain the right path toward a successful retirement.

How are you investing right now?

Many people fear investing for retirement, as the thought of putting your money at any form of risk can be daunting.

That being said, it can be one of the most effective ways to build a strong foundation for your future.

For example, by investing in a private pension, you could be saving up to £60,000 tax-free each year – according to the tax allowance for the 2023/2024 tax year.

Alternatively, have you considered how saving up to £20,000 in a stocks and shares Individual Savings Account (ISA) could benefit your finances?

If your concern is risk, your adviser can always show you opportunities to invest in low-risk portfolios, such as those involving liquid reserves, for instance.

Are your future goals realistic?

When it comes to your retirement goals, it’s important to ensure they’re realistically aligned with your current financial situation.

Your adviser can assess each of your goals and help refine them to be more beneficial for your wealth.

For instance, if you’re only a few years away from retirement, they can help you set an achievable target for how much you can build in your pension pot during this time.

Have you considered every aspect of your retirement?

You could benefit from looking at every aspect of retirement when forming your financial plan.

Your retirement could possibly last 15 years, but if you underestimate the length, you may have insufficient funds in your pension pot to last your retirement.

Also, you can consider how many financial dependants you want to support in retirement, like children or grandchildren. This can then be accounted for when determining how much you should be investing.

Another example is if you plan to retire at the same time as your partner, you can both maximise your tax-free savings by making full use of your tax allowances.

Have these considerations made you think about how you could optimise your wealth management for retirement?

If you have any further questions on how you could build the right foundation for your approach, consult your modern wealth manager for tailored advice.

Please note, the value of your investments can go down as well as up.