While it’s best to seek expert financial planning advice, there are some things you can do to help reach your retirement income goal.
Firstly, if you haven’t paid enough qualifying years of National Insurance to receive the full state pension, you may want to consider making voluntary contributions. You can normally backdate your credits by up to six years, ‘buying’ a qualifying year retrospectively. However, if you act before April 2023, you can plug any gaps in your record back to 2006.
Secondly, where your pension money is invested will depend on your attitude to investment risk. For example, some people may want a pension that invests more of their money in stocks and shares. While they have the potential to deliver better returns over the longer term, the value can fluctuate significantly over the short term. Others may want to put more of their pension pot into lower risk investments, which have the potential for lower returns. Where your pension money is invested will depend on your personal circumstances, getting financial advice will help you decide on the most appropriate investment approach for you.
Finally, if you’re a business owner you may want to consider using your pension to purchase commercial property, which would provide a premises for your business as well as regular payments into your pension through the rent, plus the benefit of certain tax efficiencies.