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AD. As I enter my 30s and begin to think about my long-term life goals my finances become more important than ever. Saving money, making extra money, cutting back, starting to invest and learning more about pensions are all really important to me now. Just 5 years ago we were in debt, and all of these things felt less important. Because we didn’t have much choice. However, making our money work hard is the key to a good life and I’m so glad I’ve learned this at a young age. Lots of my time is spent thinking about or boosting our finances. Today I want to share with you some of my hopes for our future – including planning for my retirement. Now I know you’re probably glazing over at the thought of retirement BUT there is no better time to start working on your plan than RIGHT NOW!
What I want to achieve in retirement
The most essential thing for me and my family is I don’t want to have to scrimp in retirement. Travelling the world, spending time with family, treating my loved ones and having enough money to live a great life are all important things I want from my retirement. I want us to have a similar quality of life to what we already have, and I know this means we need to save regularly. Thomas is enrolled in a workplace pension, but for me, I need to make my money work hard right now. This is why I am actively planning for my retirement.
When it comes time to retire, or at least cut down on work, I don’t want us to struggle financially. We will be mortgage free, and have low outgoings hopefully, but I want us to have extra money to enjoy life as we do now. Being able to go on a day out, or enjoy regular holidays, is a really important part of family life for us and as we grow older, and have grandchildren, I don’t want that to stop. If anything I want us to have more days out, and trips away, once we have the free time that retirement will afford us.
Hopefully, when I retire, our family will have grown lots. I’m hopeful that I’ll be able to spend time looking after my Grandchildren, or perhaps just helping with family life in general. Our parents are around lots, which is a great help with Daisy and saves us lots of money too. I’m hoping that the money we save now can help me pay this forward in my family in the future generations.
What that means for me now
My money needs to work hard, as I want to achieve lots with it. Last year I wrote about Profile Pensions, and their pension tracing service. As I had old workplace pensions it was important to me that I locate those, and put them to work on a better plan. This means I’ve already made inroads on my retirement plan, and made an improvement. Having a single pot for my old pensions makes it easier to keep track, and means I have less paperwork and fuss to deal with.
I am also working on investing more money, to help build a pot for retirement. On top of this, we will be buying a home next year and working to be mortgage free in under 10 years. This will then give us additional money to invest, and enjoy life as our children grow older and leave home.
Using a pension calculator to help myself with planning for my retirement
While I have an idea of the type of money we need for retirement there is always the worry of making an incorrect calculation. Recently I have been looking at the pension calculator from Profile Pensions. In just a few seconds I am able to check the amount of money that we may need for our retirement. One thing I love in particular about this pension calculator is that I can look at what we need for a modest retirement, and what we need for a more comfortable retirement. As I’m super frugal and make the most of my money, I can set myself a benchmark of aiming for somewhere between the two – as a minimum!
With the Profile Pensions calculator, I can answer a few small questions and then I’m on the way to planning for my retirement! I love that there are two different retirement options available and with the click of a button I can see the assumptions that have been made about these type of lifestyles.
As I already know the value of my pension pot from previous jobs, I know that I am on the way to living a comfortable retirement. However, even making a small additional contribution to my pension will make a big difference when it comes time to retiring. I definitely want to feel comfortable in retirement, and don’t want to have to scrimp, and I know that the next ten years of my pension contributions will make a huge difference to my retirement.
Who are Profile Pensions?
Profile Pensions offer a pension tracing and pension review service. This service allows people who have or believe they have, an unclaimed pension to find out more information about their existing pensions. Profile Pensions will track down your pensions and provide personalised advice from one of their expert pension advisors. The trace and review service is completely free, with no obligation to move your pensions. You can find out more about what Profile Pensions charge here for additional services including switching your pension to a new provider.
As it is estimated that there is around £400,000,000 sitting in unclaimed pensions at the moment I feel it is really important to trace old pensions. We paid that money in and we shouldn’t just let it fall by the wayside when it can make a big difference to our retirement plans, especially if found now! Profile Pensions have multiple pension types that they offer a review for.
This post is in collaboration with Profile Pensions. All opinions within this post are my own. Profile Pensions is a trading name of Profile Financial Solutions Ltd which is authorised and regulated by the Financial Conduct Authority, The FCA is a financial regulatory body in the United Kingdom. They work to protect consumers and promote effective competition as this is in the best interest of consumers. The value of your pension can go down, as well as up. With pensions, your capital is at risk. I am not qualified to give financial advice and all opinions in this post are my own.