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The UK has an undeniably large workforce. With the 21st century introducing more and more self-employed individuals each year, the dynamics of work are changing significantly. 

Usually, regular companies offer a workplace pension scheme for those who put in the work automatically. For those in Cardiff who are self-employed or freelancing, pension planning can be a daunting task to complete.

Although self-employment brings many benefits, such as flexible hours, being your own boss, and having more freedom, pension planning has to be done by oneself. Failure to work on a pension plan may result in an uncomfortable retirement—or even make retirement completely impossible.

The Standards of Living Based on The Pensions and Lifetime Savings Association

According to The Pensions and Lifetime Savings Association (PLSA)[1], there are varying degrees of pensions required to be built up to live with specific standards after retirement. For an individual, £10,200 annually is required to live at the base minimum after retirement. This value will be for a simple life that doesn’t have all the bells and whistles. 

On the other hand, an individual would need £20,200 annually to live a moderate kind of life after retirement. This has more flexibility over the previous standard, which allows pension holders of this value to go on longer vacations in Europe and even eat out more often. The “comfortable” level is the last on the list, with the individual requirements at £33,000 a year for a few trips around the world, leisure activities, and other luxuries. 

All these can be attained through proper retirement planning in Cardiff to ensure you get the kind of lifestyle you want post-working life. 

The Trick? Don’t Be Too Reliant on State Pension

The state pension is a given, but it only amounts to a little over £8,750 annually. This is really not enough to live any kind of retired lifestyle, which is why you will want to keep saving.

Depending on the standards of living you grew up around, your pension can cause discomfort if it does not tick all the boxes. Additionally, check your National Insurance contributions, which will require at least 30 years to qualify for the full amount.

Start Your Retirement Planning in Cardiff Today

When it comes to pension planning in Cardiff, it is never too early to save into a pension. Giving money more time to grow—including the added tax reliefs—will sum up to an amazing amount for your future. 

Having a comfortable retirement means starting savings early, as well as making a ton of investments whenever possible. Wealth management is not something that many young people do, but it is starting to gain traction and momentum.

There are also a number of types of pension options available, such as personal pensions, stakeholder pensions, or even self-invested personal pensions. All these contribute to a comfortable retirement that hits all the spots and gives you what you want. 

A financial advisor in Cardiff can assist with all the aspects of wealth management, pension planning, and retirement planning for a comfortable future. 

Conclusion

Retirement planning can be the best investment you can make with regards to retirement—no matter how far away retirement is from where you stand. If you wish to be a part of the force that retires early thanks to good investments and proper planning, contact Harry Robinson for wealth management techniques.

Are you looking for financial advisers in Cardiff to help you with your pension planning? At Harry Robinson Wealth Management, we specialise in financial protection and insurance, pension planning, investment portfolios, estate planning, and more. Make sure your money is going in the right direction through consultations with our wealth management professionals for a brighter future. Get in touch with today to learn more.

References

1. PLSA. https://www.plsa.co.uk/Press-Centre/Press-Releases/Article/PLSA-launches-Retirement-Living-Standards. Accessed on 10 September 2020

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