What do you imagine when you think about a happy retirement? Chasing grandchildren across the lawn? Relaxing on the deck of a cruise ship? Playing golf with your mates? All of the above???
Whatever comes to mind, you need to consider how you are going to get there. A couple of things are key to achieving your goals – good health and enough income to enjoy life after work. So, before you grab your trainers and head to the gym, let’s decide if you are going to leave your financial future to chance, or put some solid plans in place.
Live life to the full
I saw a meme the other day that joked 77 is the new 37. That might be a slight exaggeration, but the fact is, most of us are facing decades in retirement. Decades!
If lady luck is on your side, the period after you finish work has the potential to last longer than our careers, so planning how we’re going to fund our lifestyle is absolutely essential.
Let’s get the bad news out of the way first. During retirement, we are all going to experience a deterioration in our health. In the UK, the average age this starts to happen is around 75. The other inevitability is death.
Despite the fact we can’t halt the march of time, research suggests most people still don’t feel confident about their retirement. It’s coming whether we like it or not, so let’s ensure you can enjoy it, make it purposeful and celebrate the hard work that has made it possible.
When to start planning
It is never too early to start planning for retirement. If you haven’t already, start now!
A common question we’re asked by clients is “do I have enough money to retire?” But in most cases, by the time they’re asking us this, it is often too late to make meaningful changes to their pension pot.
The process isn’t macabre or as expensive as many people assume. Put some time aside to plan for your future and you will have peace of mind that the retirement you aspire to will be achievable.
How to start planning
Do you have a bucket list? If so, this is a pretty good place to start!
Draw up a list of all the things you want to do when you stop work and create a picture of what will make life amazing for you. It might include luxury holidays, home improvements or downsizing, new hobbies and daytrips with the grandkids.
Next, think about when you’re going to do these things. For example, don’t put off the long-haul holidays or house moves until you are too old, as your health might prevent you from achieving them.
Now we’ve got an idea what your dream retirement looks like, we can see if the numbers stack up. It is our belief that your finances should be arranged around your aspirations – affordability should not dictate your future. This is a key area of financial planning for us.
We will check your pensions (including your state pension), savings and investments to ensure they are being maximised and then align these with your plans.
Qualified financial advisers like us are trained specifically to help you put all the elements that will secure your future in the correct order. It is our job to keep an eye on the numbers during your working life so that when the time comes to kick back and relax, you can do so safe in the knowledge that retirement has every potential to live up to expectations!
To find out more about putting a financial plan in place, or for help reviewing existing provisions, don’t hesitate to contact us on (01246) 298181 or email me: melanie.shaw@belmayne-ifa.com
