When setting up a pension it’s important to not only consider whether it’s the right type of pension or the costs, but whether it’s going to help you achieve your pension goals.
Some people often set their pension goals before considering all the other factors involved, which isn’t a bad method to setting up or transferring a pension
By setting and constantly revising your pension goals it will give you a target and a way to judge how far you have to go before reaching them.
When setting your pension goals they should be realistic but also something which is exciting and inspiring.
Setting Your Pension Goals
Once you have set your pension goals it will allow you to set a retirement date in the calendar and know exactly what type of life you can expect once you stop working.
Having pension goals doesn’t just impact your future but it will make that Monday morning early rise feel like you are driving towards something better.
Retirement Lifestyle: Decide the type of lifestyle you would like to have when you retire, 1-2 holidays a year? A second home abroad? Living comfortably without worrying about paying for household bills? This will help to assess the monthly pension contributions required to achieve your pension goals.
Pension Contributions: Knowing how much you can afford to contribute towards a pension can help you take a significant step forward in setting your pension goals. This will help estimate your pension pot by the date you retire, although this may change and should be monitored on a regular basis.
Assets: Do you own a home or is it currently mortgaged, will this be repaid by the time your retire? Having the burden or rent or a mortgage to pay every month can have a significant impact on your lifestyle in retirement.
Seek Pension Advice
You are never too young or old to set your pension goals, whether you are 40 with 5-6 different pensions already or you are 20 and just starting out on the journey of saving for retirement.
If you are older and already have a number of pensions spread across different companies then you may wish to create pension goals and assess whether you are on target.
If you would like free pension advice from a qualified financial adviser, contact Scottish Pension Advice today on 0800 193 8767.