Five tips for planning your pension

The award winning wealth management and investment experts Killik & Co have opened a new space on Devonshire Road – House of Killik Chiswick. The Chiswick Calendar is pleased to share their guest blogs on how best to plan and save to acquire the wealth to achieve your goals.

Killik & Co won “Best Discretionary / Advisory Wealth Manager’ in the 2023 FT Investors Chronicle Awards.”

Need to review your pension arrangements but unsure where to start? Here are five tips for planning your pension.

In this article, Phil Sole, Relationship Manager at House of Killik Chiswick, shares his top five tips for reviewing and planning pension arrangements.

1. Build a budget for retirement

The age at which you can retire will depend on factors like your pension savings, other sources of income, and your desired retirement lifestyle. For example, you may wish to travel more, buy a second home or spend more time with family. It is important to understand how much you will need to save to generate enough income to support these goals, and building a budget is one way you can do this.

A financial adviser can help you assess your financial situation and develop a retirement plan that will help you to retire comfortably by creating a lifetime cashflow forecast, that will track your progress and recommend any suggested interventions along the way.

2. Review your contributions

Once you have built your budget for retirement, we recommend reviewing how much you are contributing to your pension and making any necessary adjustments.

The amount you should contribute to your pension will depend on your individual circumstances, such as your age, salary, annual allowance, and existing retirement savings. It also depends on the lifestyle you wish to afford in your retirement, as well as trying to factor in planning for future costs and the cost of inflation.

3. Use your allowances

In addition to your current pension contributions, you should consider using tax-efficient allowances to maximise your pension savings. For example, the annual allowance for pensions allows UK taxpayers to contribute up to £60,000 into their pension in the current year, without incurring an extra tax charge. In addition, it is possible, subject to certain conditions, to bring forward unused allowance from the previous three years.

Please note that once your adjusted total income exceeds £260,000 the total amount you can contribute in the current year will taper away at a rate of £1 for every £2, until it is capped at a maximum annual contribution of £10,000.

4. Consolidate multiple pots

We often find that people have worked for several different companies and built up multiple pension pots throughout their career. In some cases, they have lost sight of how many pension pots they have or how their funds are invested. If you have multiple pensions, it can be worth considering transferring them into a single pension pot.

This can make it easier to manage your pension savings and could help you to save money. However, there are several factors to consider before transferring a pension, such as the exit fees that may be charged or the loss of certain benefits.

If your family’s circumstances mean you need to review financial arrangements earlier, a more suitable option may be to invest a lump sum with the aim of generating a return or income for when you need it in the future.

5. Consider a SIPP for more control

A Self-Invested Personal Pension (SIPP) can give you more control over your retirement investments as you can choose from a wider range of investments than with other types of pension. You can choose to manage your own investments, or pay an authorised financial adviser or investment manager to help you, and then decide how much risk you want to take with your investments.

If you are comfortable taking on more risk, you could invest in assets that have the potential to generate higher returns. However, it is important to remember that higher returns also come with higher risk. You should also note that some pensions and SIPPs have higher fees and charges than others, so it is important to compare these before you make a decision.

More ways we can help with pension planning

Pension planning can be complex, but it’s important to get it right. No matter where you are in your career or retirement we can provide you with advice, such as whether to transfer your pensions, how to improve your investment strategy, how to maximise your pension income, when you can afford to retire, and the sort of retirement pot you need to fund the life you want.

To learn more about how we can help you to save, plan and invest to meet the financial goals you have for your family, please drop into House of Killik Chiswick for a complimentary chat or email chiswick@killik.com.

Please be aware that as with all investments, your capital is at risk and you may not receive back the same amount that you invest. Please note that tax treatments depend on personal circumstances and the rules may be subject to future change.


If you have any questions about this article, or wish to discuss your financial circumstances, please do not hesitate to contact Relationship Manager, Phil Sole and House & Community Coordinator, Emma Walker.

We welcome all Chiswick residents to House of Killik, no appointment necessary.  Pop in for a chat and a coffee at 13 Devonshire Road – we look forward to meeting you soon.


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