Page 62 • The HERALD • 8th December 2022 v THE HERALD - INDEPENDENT AND PROUD OF IT v ASK A PROFESSIONAL DON’T ABANDON PENSION CONTRIBUTIONS AS PRICES RISE by Michael Osman, Oyster Financial Planning Savers could miss out on thousands in retirement. As the cost of living continues to soar, with in ation reaching a 40-year high, the impact on household nances is taking its toll. But it is essential to try to maintain a savings habit even in the current climate. e impact of any breaks in pension contributions could mean savers miss out on thousands of pounds in the future that will mean less income during retirement. Research has highlighted that reducing or stopping pension contributions, even for a relatively short period of time, can have a signi cant impact on the nal pot, with savers potentially being thousands of pounds less well o in retirement as a result. HAVING AN EVEN BIGGER IMPACT. Stopping contributions when markets are lower means you miss out on the growth when they recover their value and grow again. RISK OF SACRIFICING SAVINGS TO COVER EVERYDAY EXPENSES. While currently relatively low, the risk of sacri cing savings to cover everyday expenses continues as long as these challenging circumstances go on. If possible, the rst port of call should be to reduce spending, for example, cutting back on unnecessary purchases. Doing this will be bene cial in the long term. TIPS FOR POTENTIAL SPENDING CUTBACKS IN THE CURRENT ENVIRONMENT 1. Review your expenditure for potential areas of savings – Do you have any subscriptions or memberships that you no longer use? Do you spend money on things that are a luxury, such as takeaways? 2. Shop around for better deals – You may be able to switch household providers and nd cheaper deals. 3. Set budgets – To help you keep an eye on your outgoings, it is a good idea to set a budget for things like food shopping and socialising so you don’t spend too much. If you would like to review your current plans, to meet your nancial goals now and in later life please do get in touch. Michael at Oyster Financial Planning in the centre of Hythe village is happy to help! Michael Osman, Oyster Financial Planning
RkJQdWJsaXNoZXIy MTIyNzI=