There is a lot of evidence that we postpone retirement planning because we find it too complicated and overwhelming. Don’t.
When it comes to sorting your pension, you won’t sort it all at once. What’s important right now is to start as soon as you can, obtain the tax advantages, and get into a good regular habit.
Not just contractor pensions: this applies to everyone
Employed people often have it a little easier here than contractors, people on short-term contracts and the self-employed. Pension arrangements often come through work.
But in fact anyone can do some sensible retirement planning and set up their own pension. If you’re outside a company scheme, on a short-term contract, or simply want to take more control of your finances, read on.
Now is good
Now is a great time to start self-employed or contractor pensions. Why? Two big reasons:
- Revenue’s tax return deadline is approaching in around 6 weeks. This is the last point to make a ‘special contribution’, so you still have time to get tax relief on your 2016 earnings.
- Buy now, and upgrade later: don’t wait until you find perfection (anyway, it doesn’t exist). You can always switch your funds later, either into different investments, or a different pension provider. The important thing is to bag the 2016 tax concession.
Some thinking required
It’s time to form an initial view on two numbers: what can you afford, and how much do you think you’ll need to retire.
What to do now
Armed with the figures, Moneycube’s Picture your pension tool will help you think about the broad structure of an investment that’s right for you.
It takes account of your age, likely retirement age, earnings and tax situation to help you visualise your retirement fund.
You can easily look at different scenarios, and see the estimated impact of adjusting your contributions over time. A rough view is what’s important at this stage, as we can refine the calculations with you later.
If anything’s unclear, we’re on hand to help.
What to do next
Contractor pensions, like any other, need to be closely tailored to your particular circumstances. So once you’ve established the outlines of the deal on line, hit the big green button ans send us your details.
We’ll soon be in touch to discuss how to get you started.
We’ll defuse the so-called ‘pension time-bomb’ (yawn) together, taking account of the tax relief available to you, and finding the right pension provider and underlying investments for your situation.
Get a grip on your pension with Moneycube today
