We’ve listed some of the key questions small business owners may want to ask themselves when thinking about retirement planning:
What are your aspirations for retirement?
In an ideal world, what does your retirement look like? Do you have big plans for it or do you just want to make sure you and your family are comfortable? Once you’ve established your aspirations, you can then start to make plans that focus on achieving them.
What have you accrued already?
If you’ve been employed at any point in your working life, you may well already have a pension fund associated with your previous employer(s). These funds can either be transferred elsewhere or still paid into.
It may be difficult for you to remember the necessary pension details, especially if you have several policies over a considerable period of time. Do you have any archived letters or emails from your previous employer(s)? Do you remember the name of the pension provider? Could you contact your previous employer(s) to obtain the details you need?
You may need to use this tool to help you: https://www.findpensioncontacts.service.gov.uk/type-of-pension
What will you definitely receive?
The State Pension is the minimum you will receive when you retire, so you’ll need to calculate if this will be enough to fund your retirement plans. Each year that you’ve been paying National Insurance is a year that you’re eligible to receive a slice of the State Pension. However, there are a number of factors that determine how much you’re entitled to when you retire. Here is another useful tool that will enable you to check your State Pension status.
It’s a possibility that the State Pension, along with any existing pension pots you have, may not enable you to live the retired life you desire, so this is where options such as stakeholder pensions and National Employment Savings Trusts come into play.
Are you planning to seek financial guidance?
Pension planning can be complicated so, seeking trustworthy, expert advice is imperative. Paying a small amount now for expert advice can have a positive impact on your long-term financial plans.
If you’d like more information, our team are on hand to provide you with business advice. You can reach them on 01905 777600 or hello@ormerodrutter.co.uk.
