Last year was one of the strangest years and most challenging in a generation. If you wouldn’t normally make new years resolutions, 2021 might be a good time to start.
We are working with clients new and old on setting some financial resolutions for 2021. On how to stick to them to help them in retirement. Here is four tips on improving your financial situation. However, If you would like to talk to our financial advisers for a more in depth approach. Please call 01743 382002.
- Look after your Pension
Setting up a pension is one of the most critical things you can do for your long term future. A lot of people ask “How much should I have in my pension?” which is a very open ended question, as it all depends. First of all you need to plan and have an idea on what sort of desired income you would like in retirement and work backwards from there. Firstly its important to get your state pension forecast which can be found on the UK governments website here.
Unless you are struggling financially its always wise to pay into your pension. This is reflected by the fact that the Government has pushed the Auto Enrolment workplace pensions so hard over the last few years. This is to make sure that the UK population does have enough money to live comfortably in retirement. The advantages to this is that your employer will pay into your pension and not only this the government will also add to it in the form of pension relief.
- Make a Will
Many clients do not get around to making a will, or if they do, they often fail to keep it up to date. Will are one of the most important things you can do because they;
- Ensure the assets go the people that the client wishes to benefit
- They allow clients to make provision for family members by setting up suitable trust and financial arrangements
- Provide for the guardianship of children if both parents were to die
- Facilitate tax planning
It is also worth noting that a will is not revoked upon divorce but will be read as though the ex spouse is no longer alive. Therefore it is important for divorces and widowers are to update their wills to reflect their new circumstances.
- Keep an eye on debts
It also makes sense to pay off debts quickly and the most sensible way of doing this is writing all of them down and pinpointing the highest interest rates first. The aim is to pay off as much as you can on those highest ones. This in turn will free up more money in the long term, as paying off the lower interest debts first will just prolong the time it takes to pay off the debts. If you want more in depth advice on debts the Citizen advice bureau can help you set out a plan to tackle debts.
- Talk to us at LG Embrey Financial Planning
We can help you set and stick to some good New Year’s financial resolutions for 2021. So whatever stage you are at in your financial planning journey please give us a call on 01743 382002.