WHEN it comes to retirement, I think it’s essential to keep one thing front of mind…

You’re not out to simply make ends meet.

After decades of hard graft, you want to have a sense of financial freedom and fill your time with your hobbies, passions and priorities.

But many of us can make mistakes without realising it that can significantly hit our income in later life.

I thought it useful to highlight a few of the most common pitfalls to avoid…

Delaying your pension saving…

Starting early is the best thing you can do when it comes to saving for retirement, as you have longer to build up your pension pot and benefit from more compound interest.

In short, don’t procrastinate.

Even just a small amount can blossom into a much larger sum over time.

Not saving enough…

What are your goals for retirement? Are you saving enough to achieve them?

It can be tempting to just put the bare minimum in your pension, but if you make insufficient contributions as the years pass, you might find you don’t have enough to enjoy the comfortable retirement you deserve.

Opting out of your workplace pension…

If you’re not enrolled into your workplace pension, then you’re missing out on employer contributions, which is effectively free money.

Relying solely on the state pension…

While the state pension provides a valuable safety net for retirement, it won’t be enough to ensure the standard of living you desire in later life.

It’s therefore really important to make sure you have personal pension savings in place so you can be certain of financial security and a decent quality of life.

Dipping into your pension savings before retirement…

If you’re under financial pressure, it might be tempting to access your pension pot to tide you over.

But this can lead to you paying more income tax and losing some of your tax-free allowance, as well as reducing your retirement income in the future.

Instead, you should set up a completely separate emergency fund, so you can be prepared if a difficult situation arises, without jeopardising your future.

Not thinking about pension fees and charges…

Different pension providers will have their own fee structures.

So, it’s well worth looking for options that are transparent, competitive and don’t erode your savings as the years pass.

Losing track of old pensions…

As you move from one job to the next, you can pick up multiple workplace pensions.

It’s therefore very important to make sure you know where these old pots are, and perhaps consolidate them into a single scheme so it’s easier to manage.

Not reviewing your investment strategy…

Markets go up as well as down, and the level of risk you’re exposed to will inevitably change over time.

You should therefore review your investment strategy every few months, so you can make adjustments where necessary, minimise your risk exposure and capitalise on opportunities for growth.

It’s really important that you know what’s happening with your money and that you’re able to make informed decisions about planning for your future.

Ignoring pension statements…

It’s really easy to ignore financial documents when they drop through your letterbox.

But it’s essential that you read them and understand precisely what they say.

With the help of a regulated specialist in this area, you can take the right steps to ensure you’re able to enjoy a happy, fulfilling retirement.

If you have any questions on preparing for retirement, don’t ever hesitate to get in touch with me or another member of the Future Life Wealth Management team by ringing 01246 435 996.