Find out what steps you can take now to plan for later in life.
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Quilter Cheviot is cutting through the many myths that surround investing to help you take a fresh look at your finances, evaluate whether they’re robust enough to support your plans and prepare properly for the future you deserve.
People can often be put off investing by market falls; 52% of women and 37% of men in the UK have never held an investment. Our myth-buster on whether now is a bad time to invest explains why the right time to invest is often whenever you are ready. We’ve also looked at why cash might not be a safe option for your money in the long term.
In investment terms, it’s never too soon or too late to start. Thinking that retirement is a long way off is one of the most damaging myths around. A recent survey by Which? found that, couples wanting a high standard of retirement who start saving in their 20s would need to find £572 a month. That increases to £1072 a month for a couple starting to save in their 40s. So don’t think you’re prepared just because you have a pension. Take action now to make sure you’re saving enough, and if you’re at retirement age, consider the case for staying invested in retirement.
We understand that investing in your future is a big responsibility, which is why we work closely with you to understand your values and your investment aims, so that together we can build a strategy that works. Our dedicated investment managers will create and continually manage an investment portfolio that adapts to your circumstances and helps you achieve the best possible future. You may be surprised how accessible wealth management is.
For many people, their home is their largest investment. Plans to release the equity tied up in their homes through downsizing often form part of a broader retirement plan. However, economic and social pressures creating house market volatility have seen prices declining and a reduction in buyers in recent months. Whilst the property market is cyclical in nature, if your retirement coincides with a period of volatility, or when sales are static or prices depressed, you could have a problem if you’re depending on your property to boost your retirement fund.
At Quilter Cheviot, we have over 30 years’ experience of investing in personal and workplace pension schemes and know that no two clients or pension schemes are the same. This is why we develop a bespoke investment plan for each client, or can manage part of a client’s portfolio to a set mandate.
Of all the life events to plan for, you should spend the longest on preparing for retirement. You might plan a wedding in months, spend a year or two preparing for a family, or spend several years saving for a house; preparing effectively for retirement, by contrast, can take several decades.
When it comes to retirement, many people are tempted to simply rely on their house. After all, a house is often your most valuable single asset, with property accounting for 35% of total household wealth in the UK.
Changes in pension regulation over the past ten years mean that the majority of people in the UK will be saving for a pension in one form or another. But as any financial adviser will tell you, saving for a pension doesn’t necessarily mean you are putting away enough for retirement. Estimates of an appropriate pension contribution from The Pensions Policy Institute vary from 14-27% of total salary, with many people needing to make additional contributions due to starting late or not paying enough.