Target Funding Your Pension Doubles Your Income

Target Funding Your Pension Doubles Your Income.

There is a saying that we all know:  “People never plan to fail but people fail to plan”

Research by Old Mutual (the old Skandia to you and us) has uncovered that people who take a pro-active approach to their retirement and work with a financial adviser regularly can increase their income in retirement by nearly 50%.

Old Mutual’s “Retirement Income Uncovered” report found that the average pension income was:

£13,500 pa for most people who do not seek advice

£17,500 pa for those with no target income set but see a financial adviser at least once, usually at retirement to secure the best annuity or pension drawdown deal

£26,000 pa for those that set a target for their income in retirement and work with a financial adviser to achieve that target.

The study also found that there is a dramatically falling reliance on final salary pensions, with less than 2% having these being paid in retirement and most people relying dramatically on their state pension.

What is Target Funding?

Working out exactly what your income and expenses are today.

This enables you to budget and work out what you can afford to save and what you “fritter” away.

Working out your projected expenses requirement when retired.  For example, the mortgage may have been paid off.  Children left home etc.

We then look at projecting this forwards allowing for inflationary increases to a basic living expenses.

Projected forwards existing pensions, savings and investments.

This then delivers a projected surplus or shortfall in capital and income.

By knowing what the shortfall is likely to be, we can then work out what you should be saving towards your target income.

Talk to us about target funding?

For many years, we have worked with clients on target funding exercises for retirement and other financial goals that people set.

We have also built a range of calculators and complex, spreadsheet and algorithms that we use with clients to work out the plan.

We even have a name for our service, it is called: A Blueprint Review. 

Watch/ Read about the Blueprint Review Service in the Blueprint video on this page

Learn about our regular Money MOT financial advice service.

We have a saying at financialadvice.net:

“Anything that is watched and managed improves, anything that is not deteriorates.”

Contact us about target funding for your pension so that you can plan for your future in a structured manner so that you can keep your pension and retirement on target.