As you approach retirement it’s a good idea to meet with a financial advisor each year to get a clearer idea of what your financial circumstances are likely to be when you retire.
COUNTDOWN CHECK LIST – 2 TO 5 YEARS FROM RETIREMENT
- When can I retire? Check the rules of your pension plan to determine the date from which you can choose to retire. If you want to retire early you could have a number of years before you are eligible for the State Pension. You may need to bridge this income gap by topping-up your pension now.
- What level of pension and tax-free lump sum can I currently expect at retirement?
- What benefits, if any, will I receive from my employer at retirement?
- Will this income be enough to sustain my current standard of living in retirement?
- Will I have enough money to last me for 20 or more years? How do I maximise my retirement fund? Depending on your age, you can save up to 40% of your income into a pension and claim full tax relief.
- What portion of my pension pot is tax free and what is taxed?
- What options are available to me when it comes to taking my retirement benefits?
- In the event of my death in retirement, do I need to provide an income in retirement for my spouse? Do I need to make additional pension preparations now to fund for these extra needs?
- Am I invested in the right pension fund given how I plan to take my benefits at retirement? Now is a good time to review your fund choice, especially if you are considering opting for an Approved Retirement Fund (ARF) at retirement.
COUNTDOWN CHECK LIST – 1 YEAR FROM RETIREMENT
- Meet my financial advisor and start planning the financial aspects of my retirement.
- What is my expected annual retirement budget? Include your expected annual pension income after tax and other deductions. Estimate your expected outgoings and expenses in retirement. Factor in the potential cost of long-term health care for you and/or your spouse.
If the lifestyle you want in retirement will cost more than you expect, you may need to consider continuing to work part-time, reducing your expenses, or postponing your retirement date to meet your goals.
COUNTDOWN CHECKLIST – 3 TO 6 MONTHS FROM RETIREMENT
- Meet my financial advisor. Get advice on your retirement income and how to best set this up. Do you want a secure income for life or do you want to remain invested so that you can pass the balance of your retirement fund to your dependents?
- Contact my local Social Welfare office. Advise them of your retirement date and obtain the necessary forms you will need to complete to avail of your benefits.
Now is the time to meet with a Financial Advisor to weigh up your options with regard to your retirement.
Revenue limits, terms and conditions apply. Your benefits at retirement may be subject to tax. The information set out is based on our understanding of intended legislation and Revenue practice as at April 2015.