One in three of us will retire being completely reliant on a State Pension. More of us will experience a shortfall in our pension too. Knowing what to expect in your retirement can save you from a nasty shock when the time comes, giving you the chance to fill the financial gap you may be left with.
In a recent survey conducted by Nationwide, it was found that on average, retirees will be falling short around £400 every month. Take into account those that will be retiring in a few years who want a few luxuries, and the gap becomes even wider.
Saving right now could help you avoid the pension shortfall. Speaking to a financial advisor is a good idea, and they will likely use financial advisor software to advise you of the best options to take.
What do you want your income to be when you’re retired?
Sit down with a financial advisor who has the right financial advisor software to help calculate the income you need for your retirement. Intelliflo is just one provider of financial advisor software.
People who have retired find that their general cost of living goes down. However, if you’re planning on travelling or investing in your hobbies, you will need more money to play with. Work out what your income has to be after paying for the essentials so you have enough left over for those luxuries.
How does your plan match up with your current pension plan?
If you’re already in a pension scheme with your employer, get in touch with them to see how much you have built up. Contributions have changed over the years and if you have more than one scheme with an employer, it’s important to check and accrue them or to ensure you are prepared for your retirement.
In the event of a shortfall
If you do find yourself with a shortfall in your pension, there’s a few things you can do to help close the gap. Increasing your contributions and compromising on how many years you work will help you to avoid a pension shortfall. Working a few extra years to have the lifestyle you want and putting away more money may seem like a burden now, but when you retire you will be thankful you did it.