Approaching retirement
The impulse to prepare for retirement can be triggered by many things.
It could be a significant birthday, or an ache or pain every Monday morning. Or, you may have been putting it off for too long and have finally decided that now is the time.
A happy retirement means different things to different people. What may be right for one often isn’t right for another, so it’s important to consider it carefully. Approaching the next stage of your life is often exciting, but it can invite worries, concerns and questions too.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
Your retirement, your way
- When can I stop working?
- What lifestyle do I want in retirement?
- How much money will I need for a comfortable retirement?
- Am I taking too much risk?
- How do I know if I’m making good decisions?
Income in retirement can come from a variety of sources, such as:
- State Pension
- Personal pensions
- Savings
- Investments
- Property
- Other earnings (such as a consultancy business or part-time job)
Knowing how much you can expect to receive from each is the first step to planning how you will spend your retirement.
It isn’t uncommon for a client to reach retirement, realise they have a significant pension pot saved up, and not know what to do with it. Whether you are a fair way from retirement, or nearly there, the importance of making the right decisions cannot be underestimated.
If you recognise yourself here, get in touch and let’s talk through your options.
The benefits of retirement planning
If you haven’t approached a financial planner before, here are ten reasons why financial planning is so important, whatever your stage in life.
10 benefits of financial planning
- Making a financial plan will help you define your financial goals.
- It will help you see whether your goals are realistic and if they work on your timeline.
- It will help you see if you have ‘enough’ for your goals.
- It will help you see where you need to bring your spending into line.
- It will help you identify where you could be spending more.
- It will help you understand why you haven’t been able to achieve your goals before.
- It will allow you to measure your progress against your goals.
- It will help you find ways to maximise and grow your money.
- It will help you feel more prepared for and secure in, your future.
- A financial plan gives you peace of mind.