Warren Shute is a chartered financial planner with Lexington Wealth Management. Contact him on 01793 771093 or warren@lexingtonwealth.co.uk

Q?: At the weekend, my friend told me about the day he spent ‘doing financial planning’. What was interesting to me is that he said he felt a cloud had lifted and he now had a plan in his mind about how to go about retiring in a few years’ time. Where do I start? JS

A!: You are right about how daunting this is but financial planners cut through the clutter and concentrate on the areas that are relevant.

You can do this too. Just as if you are thinking about buying a new car or television, you should imagine yourself at the other end of the task; for example, driving with the roof down in your new sports car or watching your favourite movie in 3D with your friends.

Identify when you want to achieve your goal and decide how much money is needed if you were there today.

Establish how much new regular savings you can make and which, if any, of your existing savings and investment are allocated to this goal.

Then you have the basis of your plan.

Next, you need to look at what you have in place, so for retirement it might mean listing savings, investments and pension schemes. Each pension plan can provide an illustration of future income; the type of plan dictates the type of illustration, the benefits and assumptions may differ.

With these gathered in, you’ll be able to understand what benefits are payable and establish how much of your goal is achievable. The difference is your shortfall, which is your focus for action to improve your chances of reaching your goal.

Yould be aiming to review your financial security in case illness or disability interrupts your life; make sure existing pensions, savings and investments are still the most suitable for you; maximise the value of your money before you pay tax; set future review dates; choose your new provider for your savings and make any changes needed to existing plans.

I hope my advice helps you to decide how to proceed. Of course, just like a personal trainer can help someone achieve a fitness goal sooner, a financial planner will help lift your cloud.