| Reaching Retirement on YOUR Terms |

Retirement is a significant milestone in life, and adequate financial planning is crucial to ensure a comfortable and exciting post-work life. Nobody wants to look at their retirement worried about covering day to day costs. We want our retirement to be a time when we can be free to focus on the things that matter to us.

While many factors contribute to a happy retirement, a well-structured pension plan is undoubtedly one of the most critical components. The current working population makes the existing State pension possible. According to the National Risk Assessment in 2019, the share of the population aged 65 and over is projected to increase from one in eight to one in six by 2030 and the number of people aged 85 and over, is projected to almost double. This is a major concern for government strategists who will struggle to build a sustainable State pension into the future. Even with auto enrolment on the horizon, things are looking bleak for those relying solely on the State Pension.

While nobody in Lynx Financial Services owns a motor bike, we do like the idea of the open road and the freedom it presents. 

 

Still Not Convinced? Let Gareth Explain:

Understanding Your Retirement Needs

Retirement is not solely defined by age but by your financial readiness. Your desired lifestyle, including housing, travel, hobbies, and healthcare expenses, will significantly impact your retirement income requirements.

Key Considerations for a Pension Plan

  • Future Flexibility: Ensure your pension provider offers options to meet your evolving needs, such as lifestyle investments near retirement or the ability to draw down different funds at various times.
  • Cost-Effectiveness: Be mindful of charges, as they can significantly erode your pension’s growth in certain circumstances. Always opt for plans with transparent and reasonable fees.
  • Investment Choices: Your pension plan should provide a diverse range of investment options to align with your risk tolerance and financial goals. Whether you only select “green” funds or those which match your ethical values, there are a range of options available.
  • Quality Service: Choose a provider with a proven track record of delivering excellent customer service and timely support. As a client, you should be able to reach out and ask questions about your investment.
  • Security and Governance: Prioritise providers that maintain strict security measures and adhere to regulatory standards to protect your retirement savings. This might be something you could assume, but remember that only you can protect your interests.

Pension Performance

The State Pension: For Life, Not For Living

While the State Pension provides a basic level of income, it’s essential to recognise its limitations. The State Pension is designed to ensure a minimum standard of living. It may not cover all your retirement expenses and it certainly does not respond to unexpected costs or inflation.

Relying solely on the State Pension could lead to financial hardship very quickly, especially as it pays just under €300 per week at the highest rate.

The Importance of Private Pensions

Given the potential shortfall in State Pension benefits, private pensions are becoming increasingly crucial for those who want a comfortable retirement. By contributing regularly to a pension plan, you can take advantage of tax relief and grow your savings over time.

Whether you are 5, 15 or 50 years from retirement age, saving just a small proportion of your salary can help you achieve the life you want in retirement, but most of all, provide you with much needed financial stability when you choose to retire.

It’s never too late to start

As mentioned above, it’s never too late to start. There are tax reliefs in place to help…imagine, at the age of 45, you can claim tax relief on up to 25% of your salary. This climbs to 40% as you reach your 60’s. Gareth, from Lynx Financial Services outlines one example which demonstrates the boost that compound interest and tax relief provides pension savers. Perfect for those of you who are in your mid-40s.

Here to help you save for today, tomorrow and for the unexpected.

At Lynx Financial Services, our team of experienced financial advisors are dedicated to helping you achieve your financial goals. We understand that everyone’s circumstances are unique, and we take a personalised approach to financial planning.

We’ll work with you to assess your needs, risk tolerance, and investment goals, and develop a tailored plan to secure your financial future. Let us help you navigate the complexities of financial planning and make informed decisions about your retirement income.

No jargon, no hidden fees, just plain talking, strategic financial advice.