Retirement has repeatedly been labeled as “the longest holiday of your life.” But appealing as that sounds, do you have enough money to pay for the holiday?
Research by one leading insurance company shows that 69% of people aged 50 plus are worried about their income in retirement.
Many people misjudge how much income they’ll need when they retire. If you’ve been used to eating out, treating the kids, going on luxury holidays and running two cars then it’s unlikely that you’ll want to give those things up simply because you’ve retired. In fact, many people find that their need for income actually increases when they’ve stopped work. After all, if you’re sat behind a desk all day, the only cash you’ll spend will probably be on a sandwich at lunchtime. Contrast this with how much you spend on a day off.
As concerns about income in retirement increase, more and more people opt to keep working beyond their normal retirement age.
Many people who have their own business argue that “my business is my pension.” Again, that works well in theory—but it assumes that you can sell the business for the price you want at exactly the time you want. With technology changing ever more quickly and more and more businesses losing market share to the internet, relying on your business to fund your retirement can be a high risk strategy.
More than any other aspect of financial planning, your retirement demands careful consideration. From checking on your likely State Pension to tracking down any previous pensions you might have to making sure you’re contributing sufficient to your current pension—retirement planning needs to be done thoroughly and reviewed regularly.
If you’re in any way worried about your provision for retirement or you’d like advice on any aspect of retirement planning, why not contact us? Our genuinely friendly and approachable team can help you answer some of life’s really big questions, such as:
• How long will my retirement last?
• What will my retirement budget be?
• How much income will I need?
• What income will I have?
• Will I run out of money?
A pension is a long-term investment not normally accessible until 55. The value of your investment (and any income from it) can go down as well as up which may have an impact on the level of pension benefits available. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future.
For more information, do get in touch, we’d love to hear from you. You can call us on 01789 263888 or email firstname.lastname@example.org.