Retiring in your 50’s is not an impossible dream, as long as you start planning for this early enough, regularly review how your pension is performing and possibly most importantly you get professional financial advice.
Getting financial advice from a qualified financial adviser is so important because the rules on pensions change on a regular basis as do the annual allowances that govern how much you can invest in your pension.
For example recent changes to the State Pension and the rules governing defined contribution pensions schemes mean that this could be a good time to consider topping up your pension contributions, especially if you are intending to retire in your fifties.
Retirement Income Market data from the Financial Conduct Authority1 (FCA) last year revealed that many people reaching retirement don’t take advice, preferring to take what their existing pension company has on offer.
This illustrates that the public aren’t sufficiently aware of the options open to them. Many people don’t realise that you can shop around amongst other companies and compare pension deals, enabling you to make an informed choice.
Whilst staying with your existing provider might well represent a reasonable deal for your financial circumstances, taking advice could highlight alternative options better suited to your needs.
Getting good financial advice really matters and we recommend that you review your pension with a financial adviser at least annually to review charges levied, the performance of your pension and to make sure it is on course to provide enough income for you in retirement.
The value of pensions and investments and the income they produce can fall as well as rise.
You may get back less than you invested.
1Financial Conduct Authority, Retirement Income Market Study, 2016
