If you’re wondering ‘Why Pension Plan?’, read on to find out the benefits of pension planning and professional advice…


Putting as much as you can comfortably afford into your pension now means you’ll get the benefit of tax relief and give your money time to grow. Within annual and lifetime allowances, HMRC also applies valuable tax relief on contributions.

The longer you leave before contributing to your pension, the more you’ll need to save to help ensure you have a reasonable fund at retirement.


To enjoy a comfortable old age, you need to think about what your retirement goals are, and how much money you need to fulfil them.

Many people find it helpful to think about their income needs under various simple headings, such as basic living costs, emergency cash reserve, pastimes and hobbies, gifts to family members, and money earmarked to enable them to realise their ambitions.

By viewing your finances this way, you can gain a clear picture of how much you need to have saved by the time you reach retirement. With these amounts in mind, you can build up a comprehensive plan to help ensure that you can enjoy the sort of retirement you’ve always wanted.


This is often one of the most challenging questions faced by those approaching retirement. Recent research has concluded that the average cost of being a pensioner is £11,620 a year. This figure represents an increase of £420, up 3.75% on 2015.

As might be expected, there are marked regional variations. Those living in Wales spend £9,990 whereas those living in the more expensive South-East spend more, around £13,270.

Unsurprisingly, retired people spend more time at home, and around 14% of their cash is spent on fuel and housing. This is more than they spend on food and non-alcoholic drinks (13%).

What these figures demonstrate is how important it is to make adequate provision for retirement. The new flat-rate state pension, paid to those retiring after April 2016, is set at £155.65 for someone with the required National Insurance contribution record, meaning that there will be a funding shortfall for many who have either not made sufficient contributions or have ‘contracted out’ for a significant period of their working life.


The key to building up an adequate fund is to start as early as possible and save as much as you can reasonably afford, not least because of the tax breaks available on contributions. Annual and lifetime allowances apply.

If you’re still wondering why you should pension plan please contact us for pension advice or a chat. Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering pension planning advicemortgage advice, pension scams advice and more. You can read our VoucherFor reviews here. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield.