Are you considering retirement in the near future? Enlisting the help of an expert accountant such as Ryans may be a wise decision. We can help you prepare for retirement, so you can leave those demanding schedules, obligations and deadlines in the past.
Why Use an Accountant When Planning for Retirement?
When looking to retire, most people aim to maintain or enhance their current lifestyle standard. However, a Scottish Widows survey found that 18% of workers anticipate having to work into their mid-60s because of financial constraints, 24% plan to retire at age 65, and 39% are concerned about not having enough savings to support them during retirement.
Unfortunately, without retirement planning and preparation in place, you could end up financially insecure, with a lower standard of living as you scrimp and scrape through retirement.
What Does Retirement Planning with an Accountant Involve?
- Planning your exit strategy
- Succession planning
- Pension planning
- Life assurance
How an Accountant Can Help You Plan Your Exit Strategy
If you’re a business owner, it’s important to think about your exit strategy. You must determine whether you want to step away from the business, sell, or pass on to the next generation.
If you choose to transfer ownership, a succession plan will be necessary, which an accountant can help you with by evaluating the value of your business and its assets and identifying a suitable buyer to take your place.
At Ryans Chartered Accountants, we can handle all of these responsibilities, as well as manage tax implications during the disposal process.
Fresh thinking, smart support.
How can our experts helpHow an Accountant Can Help You to Plan Your Pension
Planning your pension is absolutely essential in ensuring you are financially secure after you stop working. At Ryans, we can help you set a solid plan in place, including aiding you in choosing the best type of pension plan for you.
The three main types of pensions are:
- Defined Contribution Pension (also known as a ‘money purchase’ or ‘pension post’)
- Defined Benefit Pension (also known as a ‘final salary’ or ‘career average’)
- State Pension
Defined Contribution Pension
Sometimes referred to as a ‘money purchase’, or a ‘pension pot’, the defined contribution is one of the most popular types of pension schemes.
These are typically set up by yourself or arranged by your employer under the workplace pension scheme, and you or your employer may contribute money to it over time.
The money you contribute is used by the pension provider to make investments. The amount you receive when you retire depends on how much you contributed and how well the investments performed.
Defined Benefit Pension
The defined benefit pension scheme has taken a decline in popularity in recent years. This type of pension, sometimes known as a ‘final salary’ or ‘career average’ is usually arranged by your employer and provides you with a guaranteed annual pension of a certain amount.
This amount depends on your earnings, how long you have worked for your employer and the pension scheme terms.
State Pension
The State Pension is a pension you claim from the government when you reach the State Pension age (currently 66, with a phased increase to 67 by 2028).
The most you can receive from the State Pension is £185.15 per week (£9,627.80 per year), however the amount you get depends on your working history and National Insurance contributions.
Before planning your retirement, you should be able to answer the following questions:
- Do you know which type of pension you have?
- Are you contributing an adequate amount?
- Are you aware of all the pension possibilities for business owners/directors?
If you answered ‘no’ to any of the above, there’s no need to worry just yet. At Ryans, we can assist you in ensuring you have the right pension plan in place and help you to budget so you’ll know exactly how much you will need in retirement to maintain your current (or enhanceD) lifestyle.
This is especially important as 45% of workers are currently failing to save the recommended 12% of their salary towards retirement every year.
How an Accountant Can Help You with Savings and Investments
Once we’ve looked at your pension, we will identify any opportunities for additional retirement income such as savings and investments.
Have you got the right balance between savings & investments and high & low risk exposures?
Many assume saving and investing are the same financial activity, when in reality they are very different. While they’re both methods of putting money away for the future, they should be treated differently and serve different purposes.
At Ryans, we can help you to understand the difference and find the right balance.
Please note! We won’t sell your investments, but we can offer guidance on what you’ve invested in and the tax implications involved.
How an Accountant Can Help with Life Assurance
Life assurance is essential to protect your dependents from financial difficulties in the event of illness or death.
At Ryans, we can help you to select the right protection or investment policy for your circumstances and help put the right measurements in place so you are prepared for long-term care and medical insurance for both yourself and your spouse in the future.
Let’s Talk About Your Retirement
We provide solutions for your unique circumstances so you can enjoy your much deserved retirement after years of hard work. With expert advice put in simple terms, your journey to retirement will become a lot easier and seem more attainable.
For more information, please don’t hesitate to get in touch with our team who will be happy to help and answer any questions you might have!