Don’t leave it too late to plan for your retirement, says Watson Buckle
Award-winning West Yorkshire accountancy firm Watson Buckle is urging people not to leave it too late to plan ahead for their retirement. The comments come after a new survey found that an individual in the UK who wants to retire at the age of 68 will need to have saved seven times their annual household income in order to maintain a comfortable lifestyle.
Research published in recent days has found that the average Briton needs to save 13 per cent of their income into a pension every year from the age of 25 in order to enjoy a comfortable retirement.
According to Watson Buckle, which is based in Bradford, this means that people need to start planning ahead as soon as they can and consider other retirement planning options aside from pensions.
Susan Sedgwick, Joint Managing Director at the firm, acknowledged that pensions are “one of the most important aspects of retirement planning,” but said that people should also consider the likes of property investment, business succession planning and drafting a tax-efficient Will in order to avoid unwanted surprises for themselves and their families later down the line.
“If you are a business owner, you might wish to pass your business on to other members of your family when you retire or sell the business on. Whatever your wishes, you will need to seek specialist tax advice and plan ahead accordingly from an early stage to avoid facing unfavourable tax consequences.”
“Similarly, those who decide to invest in property need to factor in the costs of Stamp Duty Land Tax (SDLT) on additional property purchases and the phasing out of mortgage interest tax relief if they intend to let out a property in order to supplement their retirement income.”
Susan said that the tax challenges individuals were likely to face were far-reaching, diverse and often difficult to overcome without specialist advice.
“This is why it is important to seek advice early on and come up with a structured plan for your later years as soon as you can.”