Planning for your Financial Future

FSA Pension Calculator

One thing that never changes is the need to plan. It is only common sense to make proper, adequate and flexible pension provision. Contributions, which seem appropriate now, can very quickly become inadequate as the effects of under investment performance; increases in earnings and inflation take their toll. Regular reviews are vital if pension benefits are to meet your needs and aspirations in retirement. All too often, the annual review can be put off until another day and in many cases, reviews are left until it is too late.

Having the good sense to arrange your own pension is only the first step to planning sufficient income in retirement. You will also need to review it regularly to make sure that you will be financially secure in the future. After all, you will probably need to save around 15% of your earnings over 40 years to get two-thirds of your final earnings as a pension at the end.

If your fund is to be on target for the retirement you want, it is important to check and see if your contributions are increasing to keep pace with inflation. Even though inflation today is relatively low, it is sobering to think that over the last 20 years it has averaged about 6% p.a.

Remember - time can be your enemy. To ensure an adequate income in retirement it is vital to maximize the amount you invest now. The pension calculator provides you with a useful guide but please remember there are no guarantees attached to a personal or stakeholder pension.

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