For some people, retirement planning can maybe seem like a fruitless exercise – especially when you are young. If you are absorbed in your career, raising a family and taking care of your home, you probably feel you have enough on your hands without considering the preparation for life post-work. Retirement can seem a long way off in the distance, and you are not alone in this feeling. Currently, the residents of the UK are not particularly good at saving for retirement. Given that we are living longer, this is creating a new set of challenges for society.
Where we all need to start when thinking of retirement is that our state pension will usually not sustain us in a particularly enjoyable retirement lifestyle. With some forethought, good advice and good money management skills we can supplement our state pension and be able to enjoy the little things that make for a happy retirement.
Most career-minded individuals begin to think about retirement roughly around the age of 30, although no age is too young. Retirement may seem a far off endeavour, but the early 30s is a great time to start considering what life will be like after work.
Before you are 40, you should have a view of what your retirement will look like;
- Will you work until 70?
- Will you retire and start your own business?
- Will you buy a second home and enjoy a completely new life without the pressure of work?
- What will you do to be healthy enough to really flourish in retirement?
There are multiple aspects of retirement that should be planned well ahead of the actual time. Once you set your retirement goals, the necessary task of funding your retirement will become clearer. In many cases, when we are young, peopleā€™s investment portfolio will tend to take on more risk than they might be willing to take on as you mature, and this needs to be taken into consideration, too.
When saving for your retirement, the shape and direction of your savings and investments may change. You may also find that you want to be more involved in the management of your investments. This might include your property, as well as other investments. Regardless of when you start saving for retirement, the important thing is to be a proactive participant, thinking ahead and taking careful consideration with investments.
Planning For Retirement In Your 40s
By your mid-40s you will most likely have thought a lot more about your retirement plan. Hopefully, you will have started saving prior to this age but even if you havenā€™t, by the time you reach 45, your plan should be in place and in action.
This means looking at every household expenditure a little differently. Would you rather spend now or save for later? In any event, by the time you are 45, you should have a strict household budget and investing in your future should be part of that budget. When implementing a comprehensive saving plan, it is amazing how much you can save over 20 or so years.
Just as you set a path for your career, you must also set the course of your retirement – nobody else will do it for you. You should seek advice about how best to save, taking into consideration your employment options and your investment commitments. Furthermore, it is a good idea to consult with a tax expert and ensure that you are maximising the return on your hard-earned savings.
Retirement planning consists of reviewing the entire portfolio of financial tools and matching your current investment strategy with your retirement goals. You want to reduce your tax burden but maximise you earning potential. You may want to increase risk in one area and reduce it in another.
Enjoying Your Retirement
If you plan your retirement in advance and apply the same discipline you have applied to your career, you will not face unwanted surprises. One of the advantages of planning your retirement is that you will be able to enjoy spending your post-career period in comfort, with the ability to take on fresh challenges as well as making the most of more leisure time.
However, the problems associated with lack of planning are occurring too often in todayā€™s society. These are also being combated by government initiatives. Planning your retirement will enable you to maintain the same financial independence that you enjoyed while working, and allow you to enjoy the time that you deserve to relax or take on fresh challenges.
For more information about our retirement planning services, get in touch with Expert Wealth Management today by callingĀ 01993 772467. You can also contact us online.
