The days are getting shorter and the nights are getting colder, and we’re fast approaching those winter months. What will 2017 mean for those retirement planning? Whether you’re planning to retire, or if you’ve only been paying into a pension scheme for a short time, there are a few things you need to be aware of.
From 2017, every single business in the UK will have to offer – and contribute to – their employee’s workplace pension. This is called automatic enrolment. Employees can choose to opt out of this if they wish, but employers don’t have the choice: it’s compulsory.
Employers have no need to panic; there is still time to prepare for auto-enrolment to lessen the amount of upheaval. We do recommend however that unless you’ve already started auto-enrolment, that you do it before the deadline. This will give you time to get used to the system.
To find your staging date, you’ll need to know your PAYE reference and you can use this online calculator to do so.
If you’re aged 22 or above, and earn more than £10,000 a year, then why not start contributing to your pension pot? You’ll have to contribute 2% of your earnings, but only 0.8% of this comes from your pocket! The rest comes from tax relief and your employer through auto-enrolment.
The sooner you start saving for retirement, the better for you. Although at 22 you’re probably not dwelling on how you’re going to get by when you’re 70, it is worth thinking about! Take home a little less money to save a lot more; and sleep safe in the knowledge that your future self is taken care of.
Ready to Retire?
If you’ve reached the stage in your life where you’re ready to retire, then make sure you’re really ready.
Before slowing down and enjoying life post-career, we would advise that you speak to a professional who will be able to tell you how to plan financially for your retirement. If you’ve underestimated how much you needed to save, or have over-estimated how much income you’re going to receive when you retire, you’re going to find yourself with a handful of financial problems.
Our trusted, financial experts in Stockton Heath, Warrington offer full retirement planning advice, so if you’re thinking of hanging up your coat and enjoying your retirement, get in touch with us today to discuss.