Pensions: Expert shares ‘biggest mistakes’ that could cost thousands in retirement | Personal Finance | Finance

Each year the investment grows, each subsequent return is greater, which can be “very significant” over time. Jonathon Jay, Partner at DSW Wealth Planning, spoke exclusively to Express.co.uk about little known facts that can help hundreds or thousands in retirement.

He said: “The biggest mistakes I see in reviewing clients’ pensions are not saving enough early in life and not having the right investment approach.

“If you don’t think about retirement when you’re younger, you’re doing yourself a disservice.

“Early investing means long-term returns can be much higher.

“Each year your investment grows, each subsequent return is greater, which over time can be very significant. Please note that investment returns are not guaranteed and can go down as well as up.

Also Read :  Fed's Collins says inflation fight to cost jobs, recession not inevitable

READ MORE: UK recession could be a ‘really good time’ for pensions to ‘grow in value’ – act now

“Also, don’t forget that pension contributions carry income tax relief – the standard 20 percent tax credit applies to all contributions, but taxpayers with higher or additional tax rates can reclaim the surcharge on their annual tax return.”

Mr Jay explained the importance of knowing the level of risk employees have in their portfolios.

As bills continue to mount, many Brits may feel the need to dive into investing for some extra cash, but that could prove detrimental going forward.

Also Read :  Canada's New Affordability Plan - Sales Taxes: VAT, GST

Individual investment approaches should be carefully considered and executed by a professional, he said.

DO NOT MISS

“The answer is not easy to work out.

“It depends on factors like what kind of lifestyle you want in retirement, how much you can afford to save and what you want to leave behind.

“Retirement and retirement are complex areas. Professional advice can be invaluable in helping you better understand what your future holds and figuring out what’s right for you!”

As well as the state pension, Brits may receive additional income from occupational or private pensions or other investments they may have.

Also Read :  Are You Wasting Your Money on the Wrong Things? Here's What Ramit Sethi Recommends

The full new state pension is £185.15 per week.

The basic full state pension is £141.85 per week.

If people don’t think they can make a living from it, it’s important that they seek financial help to figure out how to find more retirement income.

The general perception is that people will need between one-half and two-thirds of the last salary they had when they worked, after taxes, to maintain their lifestyle in retirement.

Because those who may have paid off the mortgage will no longer have children to raise and commute costs to bear after retirement.



Source

Leave a Reply

Your email address will not be published.