This Monday marks the start of the Money and Pensions Service’s Talk Money Week. Quilter, the wealth management and financial advice firm, is urging people to discuss all aspects of money this week.
Saving for retirement is a crucial part of financial health, with savers needing to ensure they have enough in their pension pots for when they finish working.
Ahead of Talk Money Week, beginning on November 8, 2021, Quilter is encouraging Britons to consider whether they know how they will achieve a comfortable retirement.
Jon Greer, head of retirement policy at Quilter said: “Planning for your retirement and saving sufficiently into a pension is vital as it ensures you will have enough money to live a comfortable lifestyle once you have stopped working and having no plan in place is one of the biggest mistakes you could make.
“While auto-enrolment has had a positive impact on uptake of pensions and retirement savings, many people are still struggling to get to grips with planning their finances for later life.
Reconsidering if you previously opted out of auto-enrolment
“If you previously opted out of auto-enrolment, it would be wise to reconsider and re-join as soon as possible as you are likely missing out on valuable retirement benefits – not only your own savings towards retirement, but your employer contributions too.”
It’s not too late, or too early, to start saving
“Some people consider saving from a young age to be unnecessary, but it is in fact one of the most important times to be contributing as that money will get the most bang for its buck thanks to the turbocharging effect of compounding on long term investments.
“Additionally, if you are someone who has left saving for retirement until later in life, it would be a huge mistake not to engage with your pension pot. While it may seem like a daunting task it needn’t be, and your future self will thank you for it.
Another key issue which Quilter believes Britons should consider during Talk Money Week is that of inheritance, as they urge people to discuss their plans for their wealth once they pass away.
Rosie Hooper, chartered financial planner at Quilter said: “While it can be considered an uncomfortable conversation to have, making sure that your family understands your wishes and the plans you have in place for your inheritance will reduce the stress on your loved ones once you pass away.
“What is likely to be an already emotional period will be made that bit easier by you having had an open conversation about your finances and making sure that things are not left confused or contested in a long, drawn-out affair.
“When planning how to pass your wealth to those closest to you, there are many options to consider. Receiving financial advice and having an open conversation with your family will not only ensure that your wishes are fulfilled in the most tax efficient way possible, but your family can better understand their possible financial futures as well.
“We tend to find some people may over-estimate the inheritance they will receive. Having conversations earlier will put your own mind at ease, and better prepare your beneficiaries for the future as well.
“Additionally, if there was a sudden death or illness in the family then it would be beneficial to have already had those conversations, so the earlier you can begin discussing your estate planning openly with your family, the better.
“Alongside estate planning conversations with your family, discussing the possible need for a Lasting Power of Attorney (LPA) could also be beneficial. Having an LPA in place can provide you with peace of mind as you know who would manage your affairs if you were to become unable to yourself.”