Existing clients can use these links to log in to the Infinity dashboard. Not a client? Why not get in touch to find out about our services.
In an ideal world all our clients will have started putting money aside for their retirement from the very first pay packet they received. In reality, this is often not the case. A familiar scenario is for someone to have spent their twenties feeling immortal and that pensions are a waste of money when there is so much more fun stuff to be spending your money on, their thirties struggling under the weight of a mortgage and the expense of young families and their forties suffering from a rising feeling of panic about their lack of pension provision when the penny finally drops that a state pension is not going to cut it for a comfortable retirement. By the time people reach fifty, with – hopefully – more working years behind than ahead, it can seem like an unsurmountable mountain to climb to make up for a lack of savings over the previous three decades.
While it is true that starting saving once your half century is past is not the ideal, it doesn’t mean that you should give up – there are still some steps you can take to salvage your situation. While you may never have the pension you could have had from regular saving throughout your working life, your retirement will be more comfortable if you take action now rather than sticking your head in the sand and doing nothing. Here’s what to do:
To begin with, contact the Pension Service to ask for a forecast to find out when you are due to retire (a moveable feast at present with changing legislation) and what pension you will be entitled to. Then check that you haven’t got any ‘lost’ pensions that you might have forgotten about from former jobs – a more common scenario than you might think. The Pensions Advisory Service gives detailed advice on how to track down lost pensions here.
By the time most of us reach our half century we have a relatively good idea of how our financial lives are going to pan out. On the plus side, our outgoings might be significantly reduced by the time we stop working. Most of us will have had our families and know how many more years we have to support our children through their school and university years. The end may also be in sight for the repayment of any mortgages on property. If these two major expenses are over before we retire, that could significantly reduce the amount of income we will need. In addition, if you have equity in your home downsizing could be an option to release funds to invest and live off during your retirement.
The shortfall between what you will receive and what you need is what you now need to concentrate on. Maxing out your pension should be a priority to make the most of any tax breaks you might be entitled to but income can come from other sources too – you might receive bonuses or an inheritance which can significantly boost your retirement fund.
There is no use crying over spilt milk – or lost decades of compound interest – focus instead on the future and maximise the amount of compound interest you can get between now and your retirement by saving as much as you possibly can.
Risk is a fact of life when you are investing but the older you are the less you can afford to take. If you are only starting to invest in your fifties it is of the utmost importance that you get your strategy right. You definitely don’t want to be piling all your savings into risky equities but you will need more than the interest currently offered by stashing your cash in a bank account. A balanced portfolio of investments with a bias towards bonds is probably the way to go.
Given that you don’t have the luxury of time to make up any investment losses, you would be well advised to get help from a professional in planning your finances going forward. A qualified adviser will be able to assist you in finding the right solutions to build up the best pension pot possible in the time you have left before you stop working. Don’t waste any more time – why not make an appointment to speak to one of our experts today?
This Site and the Content are not directed at or intended for distribution to any person (or entity) who is a citizen or resident of Hong Kong (or located or established in) any other jurisdiction where the use of the Site would be contrary to applicable law or regulation or would subject Infinity Financial Solutions Limited to any registration or licensing requirement in such jurisdiction.
Persons (or entity) who is a citizen or resident of Hong Kong please click on the link below to access our Hong Kong Site.