Lifetime investing

As we move through the different stages in our life, our plans and goals will inevitably change.

This also goes for our investment strategies, which need to flex and adapt as we move through the decades.

Your forties and fifties

This is often considered to be the peak earnings period where surplus funds should be dedicated to bolstering your pension pot and investment portfolio. It is also vital to have a sound, tax-efficient financial plan in place at this stage, with regular reviews to ensure you remain on track to meet your goals. As you approach retirement, a more conservative approach may be appropriate, perhaps switching from equity-based investments to more stable asset classes such as bonds. This is a tricky process to get right without expert help, which is where we come in.

TOP TIP – don’t get stuck in a rut with your spending. Pay close attention to what you’re bills are, make improvements and/or reductions where you can, and use the money saved to pay extra in to your pension – you’ll not only boost your retirement pot but get valuable tax relief on the payments. If you’re not sure what this is, head to our page showing the power of tax relief.

Steady on in your sixties

With the State Pension Age continuing to rise, many people are now working and consequently continuing to invest until well into their sixties. Your attention is likely to now be shifting to income-generating products for your retirement years as well as ensuring that your income remains in line with your living expenses. This is particularly important in times of rising inflation. You’ll also likely be considering the best and most tax-efficient ways to protect and transfer your wealth to the next generation.

TOP TIP – as you’re nearer to retirement, you should have a better idea of what your spending needs are likely to be. Sit down and work this out, split it into what you have to spend (essential), what you like to spend (lifestyle) and what you’d like to spend but could live without (discretionary). When you’ve got this you can work back from there and using the power of cash flow planning (see video) our retirement experts can work with you to plan this out.

Into retirement and beyond

As well as enjoying your retirement years to the full, you’re likely to be thinking about how you can pass wealth on to future generations. The first step is making sure that your Will is up to date and will carry out your wishes after your death. As well as planning your inheritance, you may want to gift money away during your lifetime and see your family benefit whilst you’re still alive. Getting advice at this stage can be vital in making sure that your heirs receive as much of your estate as possible and pay less Inheritance Tax.

A Will isn’t the only piece of forward planning you should consider. A Lasting Power of Attorney (LPA) enables you to choose people you would like to make decisions which affect your finances or health and welfare if you were no longer able to do so. We can explain how this could benefit you.
There is a tricky balance to reach at this stage of life, as although you want to pass on your wealth, you certainly don’t want to leave yourself short in your later years, particularly if you need long-term care in later life.

Helping you with every stage of your life journey

There is no one right approach but try to make sure the decisions you make are the right ones for your age and that your investment approach ages with you. We would say this, but it’s a good idea to meet with a qualified financial professional who can tell you where you stand and where your plan needs to take you.

Our retirement experts would be delighted to have a conversation with you about how we can help. The first meeting is with our compliments, so please get in touch today.