There’s no time like the present to start thinking about your plans for retirement. Knowing that the government has announced plans to potentially increase the state pension age further – many of us might not be able to access our state pension as early as we think.
Having a plan for the future is essential and knowing that inflation is at an all-time high, our retirement savings might not stretch as far as we need them to. Some costs of living will fall away in later life (such as mortgage costs or the costs of raising children) but other costs will creep in …
Have you reviewed your provisions for retirement? Does it meet your expectations?
As part of our holistic service, and often in conjunction with advice provided by an Independent Financial Adviser, we regularly talk to our clients about…
- Maximising contributions into pension schemes, especially when relief from tax and national insurance contributions can generate a saving of up to 47% under salary sacrifice arrangements.
- Succession plans – for those who run their own businesses. Are you intending to sell or pass over the reins to the next generation? The last thing you want is to defer your planned retirement because your successor is not ready ….
Generally speaking, you will need 35 qualifying years to bank a full state pension.
There’s currently a window of opportunity to fill gaps in your National Insurance record – this was scheduled to close on 5 April 2023 but the government has extended it to 31 July 2023.
Gaps in work for various reasons can lead to missing out on qualifying years, meaning your entitlement to a full state pension may not be achieved. To rectify this, you can fill gaps in your record by making voluntary Class 3 National Insurance Contributions. Usually, you can only do this for the past six years but at the moment, you can go back as far as April 2006. If you are concerned about your state pension entitlement, check your contribution history via your Personal Tax Account. However, before topping up, it is advisable to speak to a financial adviser – remember to consider the years you have left to work before making any payments!
If we can help you smooth your way into retirement and/or assist with your succession plan, please do not hesitate to call us on 01223 810100.
