Preparing for Retirement
Retirement is a significant milestone that marks the transition from a career-focused life to one of leisure and personal fulfilment. However, preparing for retirement involves more than just financial planning; it also requires emotional readiness. As a certified financial planner, I’ve seen firsthand how a holistic approach can make this transition smoother and more enjoyable. This article gives you some top tips to help you prepare for retirement both emotionally and financially.
What does retirement mean to you?
We have seen a significant change over the last 50 years in so many areas of life, but retirement isn’t something we often think has changed very much. It certainly has changed, the days of working for 40 years then finishing on a Friday and waking up on a Monday morning retired, receiving your state pension and putting your slippers on is a distant memory for most.
How much do I need in my pension to retire?
The question of ‘how much do I need in my pension to retire?’ is something I’m asked frequently but it’s not a question you can answer unless you know what retirement looks like for you. When I work with clients, I ask them to spend time thinking about what retirement looks like for them personally and what they want to achieve. Here are some things to think about before you can start to answer this difficult question.
Retired and Worried about spending too much
Bob and Alice Can-We-Spend-It had been retired for a couple of years. They had always dreamed of retirement: the things they’d do together and the places they would see. The trouble was, they were worried about spending too much, too early, and not having enough for the future. This article looks at how sitting down with a real financial planner, they were able to establish how much the life of their dreams would actually cost.
Waiting Longer for our Pensions
We’re all living and working longer so I’m sure it isn’t going to come as a great surprise that the government have confirmed their plans to increase the age for accessing private pensions from 55 to 57 with effect from April 2028.
Another year goes past but retiring seems such a long way away!
Many people that come to see us are either approaching retirement within the next few years (how did that happen!), or have suddenly realised that they are half way through their working lives and start thinking about how nice it would be if they didn’t have to work for another 10-20 years or more.
Obscured by clouds
Work and retirement are not perhaps as black and white for most people today as they were back in the day when life was simpler (and life expectancy was lower). You worked until 65 then took your pension and often died 5-10 years later.
Today we live longer, retirement is no longer mandatory at age 65 and it is common to meet successful business owners and executives in their 50s who wrestle with the big question – "When should I retire?" or “What do I need to do to stop work?”
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What does retirement mean to you?
Retirement is changing, some people still aim to be able to stop work as early as possible, other’s plan to make a slow transition into retirement and for some, they enjoy work and plan to carry on working for as long as their health allows.
The Honest Truth
There are few bigger priorities for people today than investing for the future. The rising cost of health and education, soaring house prices, longer life expectancy and the increasing strain on welfare budgets means it is vital that everyone does what they can to remain financially independent for the rest of their lives.