When we ask our clients when they plan to retire, many will state their State Retirement age as a default answer. Whilst your state pension age is the earliest you can receive your state pension, it doesn’t have to be the date you ‘retire’.
Whilst it’s never too late to plan for your retirement, the earlier you do start, the more control you may have on the day you decide to retire on.
Here are our top seven tips to plan for a long, happy and prosperous retirement;
- Have a plan! “Most people don’t plan to fail, they fail to plan” so the famous saying goes but never has it been truer when planning for your retirement.
- Develop an understanding of what retirement will look like to you. How will you spend your time? Will you completely stop work, reduce your hours or even have a career change?
- Establish whether you can afford to retire. The firmer grip you have on your likely living costs in retirement – on both a day to day level and on a capital expenditure basis – the greater clarity you will give yourself when looking at your likely income. These two figures are likely to be the most important when considering whether you can retire….. or not!
- Get a valuation of your State pension entitlements. You can do this online at www.gov.uk/check-state-pension.
- Review your pension funds – are they invested in line with your retirement plans, to your attitude to risk & to your retirement option plans?
- With retirement in mind, people will look towards their pension for a source of income – but you should always consider any other assets and investments you have – for example cash, shares, property – to ensure you are taking income in the most tax efficient way.
- It’s finally time to spend! When you reach retirement you may find it difficult to change your mindset from a lifetime of savings to using the funds for the purpose they were intended! Establishing your ultimate aim for your funds – from spending it all yourself to providing a legacy to future generations – involves careful planning to ensure they are achieved.
If you would like to discuss your retirement planning, please do not hesitate to get in touch.