1. Personal Goals
Think about your short, medium and long term goals. What do you want to achieve — move house, help your kids financially, retire early? These should be personal to you, and identifying these can make meeting them much easier.
2. Know what you’ve got
A study by AAT showed that the average person in the UK has six jobs in their lifetime. As a result, many people have multiple pensions with different providers. Not all pensions are created equal, rules have changed over the years and pension benefits can differ greatly. Knowing and understanding what you’ve already got is important.
3. Save efficiently
From tax relief on pension contributions to tax-free growth on ISAs; different savings products have different rules. What’s best for you will depend on your personal circumstances and your future goals.
4. Plan early
Don’t leave your planning until the year you want to retire! Knowing what you need to do in advance, in order to meet your personal goals, gives you the time and capacity to make any required changes. Typically, the earlier you start, the less drastic the changes need to be.
5. Engage with a Financial Planner
The previous points may seem too daunting or time consuming to address on your own. Working with a financial planner can help you plan effectively, to meet your goals and do most of the heavy lifting. This allows you to spend your time enjoying the things that make life worth living without financial uncertainty.
Written by Simon Warne
