Retirement Planning

When the question comes up about retirement planning we immediately think about money and financial planning. There are two inextricably linked threads in answer to the question, ‘What is retirement planning?

These two threads are:

  • Retirement Financial Planning
  • Retirement Lifestyle Planning

Although they are closely bound together, and we need to do both if we are to have a happy and fulfilled retirement, they really need to be started at different stages in our life. In order that we have sufficient money to enjoy our increasingly lengthy retirement, due to ever-increasing longevity, we should start financial planning as early as possible. However, as retirement gets closer, lifestyle arguably becomes more important, so that we give ourselves the best chance to make the right choices for ourselves in retirement, so that we both enjoy it and get satisfaction from it.

Ideally we should consider our retirement planning in depth at least every 10 years after we first start work. In the earlier years this will focus most heavily on financial and pension planning with initial thoughts about lifestyle and gradually the emphasis will switch to be heavily the other way round in the last few years before retirement.

If you are within a few years of potential retirement you may also like to consider our retirement seminars and trainings.

Below we look at both Retirement Financial Planning and Retirement Lifestyle Planning in a little more depth.

Retirement Planning – financial

We need to consider the fact that we may well live for 25 years after retirement with no income from employment. No matter what our ambitions we want to have a decent standard of living in retirement and the earlier we started making provision the easier it will be to achieve that. We need to make an estimate of how much we think we will need in retirement to maintain the lifestyle we want and revise that as our views of how we want to spend our retirement change.

If you are part of a company pension scheme make sure you find out how it works and how much it is likely to pay you when you retire. This is difficult if you are in a defined contribution scheme because of the uncertainties inherent in the stock market, but it’s well worth getting a realistic estimate. You should also find out if you can make extra payments via AVCs (Additional Voluntary Contributions) to increase your retirement income.

One way of increasing your retirement income is by taking out a personal pension. There are a great many on the market and we need to be careful that we choose one that will suit us in terms of payments, flexibility, benefits and so on. So do your research: read the financial press, look on the internet, ask people who already have a pension and so on.

  • You may decide you need a financial advisor to help. RESET have qualified and experienced Financial advisors: Fill the form provided to get in touch;

Retirement Planning – lifestyle

With increased longevity, these days when we retire we hopefully have many years of active life in which to make the most of this new phase of life. Even if we opt for a phased retirement for financial or other reasons, we need to plan what to do with all that extra leisure time to both enjoy it and achieve a satisfying retirement.

We need to consider how we stay fit and healthy, whether we want to work in retirement including voluntary work, our desire for travel ranging from days out to world trips, hobbies and interests including further education, how our relationships with friends and family will change and a whole range of other aspects. The goal is to ensure that what we choose to do keeps us physically and mentally fit, maintains or increases our social circle and that we do the things we enjoy rather than feeling we have to do things that we don’t like.(Extracts from Later Life.)