This November, let’s talk Financial Wellbeing

Throughout November we will be focusing on Financial wellbeing.  On the 18th to 22nd November it is financial awareness week which encourages people to start conversations about their money and retirement. Throughout the month of November we will be offering sessions by Bank of Ireland for general guidance and financial wellbeing support, AGE NI to help those who are 50 plus to take account of where you are and where you want to be in later life and NILGOSC will be offering 1 hour workshops to help you understand your pension statements and options available. 

Speaking to providers or a financial adviser can help you to optimise your finances to help achieve your financial goals and recommend the most appropriate pension fund for you in your circumstances.

In a recent survey, free debt advice provider, PayPlan, found that over 45% of adults describe their pension knowledge as limited and only 20% have worked out how much income they will need in retirement.

When should you start talking about the future of your finances?

It’s known that people can be more focused on their current finances, rather than their future ones. One in five PayPlan clients have at some point reduced their pension contributions to help to pay for everyday life, with 20% of 18-34-year olds opting out of paying towards their pension altogether.

Despite this, pensions are still a silent worry for adults. 70% of PayPlan’s clients reported that not having enough savings will, or is likely to, prevent them from retiring on time – with only 11% saying they think they will retire on time.

Improve your pension knowledge

One of the most frequently asked questions when it comes to pensions is how much people should save for retirement. The short answer here is that the amount you need for retirement will depend on health, lifestyle, debts and savings. No two people will ever have the same conclusion.

1. Start saving for your pensions as soon as you can

The more time that you invest for retirement, the more you will benefit from compound interest – this is where you earn money on your interest.

You’ll also get tax relief from the government on the marginal rate. So, if you’re a basic rate taxpayer, the government will give you 20% more.

2. Prioritise budgeting

The sooner that you get into the habit of budgeting and assessing your finances, the better. Being informed is one of the biggest powers that you can have over your finances. If you don’t know what you have coming in and going out each month then it’s unlikely that you’ll be able to take control of your finances. I

n theory, most people will slow down in retirement, meaning their income needs can be reduced. However, it isn’t always the case. If you need to make loan repayments, or have your eye on a world-wide trip, then give yourself as much time as possible to have the funds that you need.  

3. Confused? Talk about it

If you would like to start a confidential conversation about financial worries or problem debt, visit www.payplan.com/serc.

To book onto sessions for Bank of Ireland, NILGOSC and AgeNI email mindyourself@serc.ac.uk which have been advertised in the Mind Yourself November Newsletter.