“You’ll also need to factor in things like inflation – something that all of us will currently be more aware of than ever. Making sure that your re
“You’ll also need to factor in things like inflation – something that all of us will currently be more aware of than ever. Making sure that your retirement savings can keep pace with inflation will help reduce the risk of you facing a ‘real-term’ loss in value in the future.
“Put simply, if your savings aren’t growing at the same rate as inflation, each pound gradually buys less and less over time, meaning you may not be able to do as much as you’d planned with your money.
“A financial adviser can again help to mitigate the impact of inflation. They can help weigh up the types of savings and investment products that are available to you, which could give your money a chance at staying level with, or even outpacing inflation. They can also recommend options that align with your retirement goals, and your appetite for risk.
“A final element to keep in mind is tax. If you have a pension, you will be able to take up to 25 percent of this tax-free. However, it’s essential to remember that the rest of your pension income will be subject to income tax – and you may need to pay capital gains tax on any shares or funds outside of your pension or ISAs.