This does not constitute advice. Professional advice should be taken prior to acting on any part of it. Dental and Medical Financial Services Limited is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.
When you’re starting out in your career, you might think that you have plenty of time ahead of you to save toward your retirement. But the earlier you start planning and contributing to your retirement fund, the better chance you’ll have to live exactly how you want during your later years. Find out how to adjust your retirement planning strategy no matter what stage of life you’re in.
Starting in your 20s
You might have other financial priorities in your 20s, which is understandable, but it’s important to realise that the more time you have to save, not only will you save more, but you will also further benefit from compounding. Plus, when you’re younger you can afford for your investment strategy to be slightly more aggressive which could result in good returns, with plenty of time left for your portfolio to recover in case your risks don’t pay off.
Saving for retirement early will also help you establish good financial habits like budgeting and making smart, informed investment decisions. Time is on your side, so take advantage of a period when you don’t have a lot of financial obligations and start saving early.
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Ramping up in your 30s
With your 30s comes a lot more to juggle financially. People in this age group usually have a mortgage and/or a family to support. But even with other financial obligations, it’s still important to focus on the future.
Use your 30s to pay down as much debt as you can so you can free up funds for investing. If you receive any unexpected windfalls or bonuses/promotions at work, consider putting it all toward your retirement. Use this time to refine your investment strategy and optimise your asset allocation. Don’t forget to take advantage of employer contribution schemes to help boost your pension pot over time.
Getting serious in your 40s
Now is really the time to step up saving to ensure you meet your retirement goals. Regularly review your financial plan to ensure your previous calculations and projections still hold up. If you haven’t been working with a professional yet, as your financial situation gets more complicated, we strongly urge you to seek expert financial advice to ensure you have the best plan possible.
If you’ve moved around to a few different jobs in your career, try to consolidate your pension accounts to make them easier to manage. And if you can afford it, consider ramping up your pension and retirement fund contributions.
Planning in your 50s
Your 50s is the time to make sure that the plan you set for retirement is still on course. Continue your regular checks with your adviser and increase contributions to ensure that you are maximising your annual and lifetime allowances. If you have been enjoying an aggressive investment strategy, now is the time to pull back and readjust to a more conservative approach to protect your wealth.
In your 50s, it’s crucial that you get personalised advice catered to your specific needs and goals, so don’t miss those financial adviser meetings.
Settling down in your 60s
When you reach your 60s, you’re in the final stretch of your retirement savings journey. It’s time to ramp down and prepare for an important part of the planning process, the decumulation phase. Now is the time to prepare a retirement budget that you know you’ll be able to stick to during your retirement, accounting for any changes that often happen later in life.
Retirement planning at every age
No matter where you are in your career journey, retirement savings should be top of mind. While your strategy will need to change as you move through the years, your plan should always be designed to provide the lifestyle you want in your retirement.
When it comes to financial planning for medical professionals, Dental & Medical Financial Services are the experts. Dental & Medical Financial Services will help you devise a plan to build and protect your wealth so that you can have a comfortable life and retirement. Let Dental & Medical Financial Services help you achieve your retirement goals; get in touch with us today.
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