What do I do when approaching retirement?
Approaching retirement is a time when many people look forward to enjoying the fruits of their hard work over the years. And if you are set for the retirement you are desiring, then it really is an enjoyable time of your life.
For others though, there are still some aspects of retirement to consider as they approach that time in their lives. For better advice, we need to answer the main questions, such as:
Ask yourself some questions:
- How much do I need?
- How much do I have?
- Is it enough?
- How much would I like?
See our easy to use pension calculator here or talk to one of our Advisors.
Our Expert Advisors are here to advise you on the best path to help you reach your retirement goals.
Boosting retirement savings
When approaching retirement, it is recommended to consider whether or not you have saved enough money to fund the lifestyle you would like once you retire. If you’re approaching retirement age and you feel your retirement fund may not be as large as you wish, there are some things you could do.
One of the main ways to boost your retirement fund is to make an Additional Voluntary Contribution (AVC) to your pension which could help increase your fund amount in a tax-efficient way. If you’re unsure about whether your retirement savings are sufficient for the lifestyle you have planned, speak to one of our Pensions specialists.
When can I retire?
As they approach retirement age in Ireland (currently 66 if you are planning to draw a state pension but likely to change over the next few years), many people decide to delay their retirement or even decide to work part-time after they retire.
The terms of your employment contract may dictate when you must retire, so you should consult this first before you make any decisions. If you decide to continue working after you retire you can still collect your pension, or you may also be able to defer your pension for many years.
So, deciding to retire or continue is an important consideration when planning your retirement. The age at which you retire will determine how much money you need to save and the amount of time you will have to build up your retirement fund.
For advice about when you could retire or whether your fund is sufficient, contact one of our team.
Accessing your retirement fund once you’ve retired
Choosing how and when you would like to receive your retirement income is an important decision and it makes sense to have all the information and advice to hand to guide you through the process.
Before deciding how you would like to receive your pension income, there are a few things to consider – the type of option you choose may depend on your pre-retirement policy conditions.
It will also depend on how much you have saved in your retirement fund, the type of pension you have, and your personal preferences whether it be an ARF or an Annuity.
Future peace of mind
One of the main worries people often have is how a change in circumstances could impact their retirement fund:
- What will happen to my partner should I die?
- If I die before my retirement, will my pension fund be paid to my partner or my estate (subject to the rules of the scheme).
There are many aspects to consider and there is no definitive answer to questions such as those above – it may be that your fund is paid free of income tax, although your estate may have to pay inheritance tax. Or, If you die after you retire, and you have a pension, it may continue to be paid to your partner, be paid to your partner as a lump sum or be paid to your partner as a percentage of your pension payments.
Given the potential complexity of this area, it’s a good idea to seek financial advice so you are clear about all possible outcomes.
For questions on any of the above or any other pension-related concerns, you may have, contact one of our pensions experts on 1890 300 303.