How hindsight could help you plan your pension

How hindsight could help you plan your pension by Amber Rolfe Sometimes the best way to plan for your future is to learn from others’ experiences… Although many retirees are happy with their life after retirement â€" some would make changes if they were able to do it all over again, especially when it comes to their finances. In fact, more than two in five regret financial planning decisions that have left them struggling financially1.To help you avoid similar regrets in later life, we spoke to the retirement experts, Prudential, whose recent survey reveals what pensioners would change about their retirement planning:Saving early could avoid disappointment With nearly one in five recent retirees saying they didn’t save enough for their retirement, and others regretting not saving earlier in their working lives â€" the importance of retirement planning in advance is clear.And, with 57% of pensioners stating that financial problems are the worst part of retirement2, it’s evident that the decisions you make before yo u leave work could actually have an impact on your quality of life.So no matter what you want your retirement to entail, hindsight proves that the best way to secure a comfortable retirement is to save as early as possible in your working life.Not only will you avoid the regrets that many others have experienced, you’ll feel safer in the knowledge that you are more likely to be financially stable when you retire.It’s not just everyday life you need to plan for According to Prudential’s survey, almost half of those not enjoying their retirement blame poor health.This proves that unexpected expenses are a real possibility and that, when it comes to your health, it’s important these costs are covered.  It’s always best to set aside some funds to ensure you and/or your partner are taken care of, and not caught off-guard.The survey also shows that 35% of pensioners feel bored or lonely, so saving for an active and full lifestyle is really important. Having extra free time is o ne of the best things about retirement, but you need to be able to make the most of that time.Getting advice is essential Getting financial advice before making a decision about what to do with your fund is essential â€" especially with the recent pension reforms involving increased options for those about to retire.Although these pensions reforms provide over 55s with more options on what to do with your money, there is often confusion over what is the best approach to take and this may lead to impulse or pressure-based decisions.Stan Russell, a retirement income expert at Prudential emphasises the importance of the decisions people make before they retire, and explains that ‘the pension freedoms mean that the choices are now broader, and in some cases less set in stone, so most people will benefit from a consultation with a professional financial adviser before committing to their retirement finance decisions.’ Expectations don’t always line up with reality  Many pensioners state that a misunderstanding of how much the State Pension was actually worth has resulted in them spending too much money immediately after retiring â€" meaning they weren’t able to take advantage of the new pensions freedoms.In fact, a recent report by Brewin Dolphin revealed almost half of those aged 55-65 year olds expect their pension to last 10 years. But with an average pension pot adding up to £163,000, and 29% of pensioners saying they’d need at least £18,000 a year to support their lifestyle â€" estimations don’t always add up.It’s worth considering that 11% of people regretting their frivolous spending immediately after retiring1 the same percentage of people who wish they’d set a budget before retiring.That’s why it is so important for you to plan your finances in advance, and avoid potential disappointment in the longer term.  Looking for a role with a better pension? View all available jobs now  1. Consumer intelligence conducted an independent online survey for Prudential between 2 and 16 March 2016, among 409 UK adults who have retired with the last five years.2. From full article published in thisismoney.co.uk http://www.thisismoney.co.uk/money/pensions/article-3539957/What-retirees-wish-known-hindsight.html  Prudential Financial Planning advisers provide personal, face-to-face advice tailored to meet your individual requirements. They can review your finances and give advice on your retirement plans, identify areas where you could make your savings more tax efficient, and let you know if you could get better returns by moving your money. Find out more now.