Retirement Planning
Plan your retirement without running out of money
Retirement Planning
Plan your retirement without running out of money
If you are not asking yourself this question, you should be! During your working life, when hopefully for the majority of the time you’ve been receiving a regular income each month, your spending habits should broadly match the life stage you are in. For example – during your earlier working life, you may be buying your first property and/or starting a family or even running a business – you might be doing three! In any case, your spending is likely to reflect a lot of external pressures which simply won’t be there when you get close to or at retirement.
In an ideal world you will have less people dependent upon you for financial support, and your debts are likely to be lower or fully paid off later in life. So whether you are in your 30’s, 40’s, 50’s or 60’s we realise that there is a balance to be found between what to pay into your pension fund now with your current lifestyle demands, and whether that will achieve the kind of lifestyle you would like in retirement.
According to the Pensions and Lifetime Savings Association (PSLA) (1), 77% of savers don’t know how much they will need in retirement and only 16% can provide a figure for this. Their research covered a range of retirement lifestyles from ‘minimum’ through ‘moderate’ and on to ‘comfortable’. It’s a surprisingly wide range with the minimum amount required for a couple, according to the PSLA, being £15,700 right up to £47,500 for a comfortable lifestyle which includes “more financial freedom and some luxuries”. It’s an interesting read and will certainly help you on your way to working out what you might need. Using our investment and pension calculator found here you can make a start with looking at your current situation.
One of the key considerations, and often the most overlooked, is ensuring that you will have enough retirement savings, including any state pension income, to last your lifetime and give you the income you need in the most appropriate way.
At MyRetirement, our retirement specialists are experts in helping clients have great conversations about their expenditure requirements in retirement. They are able to provide helpful guidance around what your spending might look like in retirement.
As part of their support they will be on hand to provide appropriate challenges to some of your thinking using their experience and expertise, and this in turn will help to forecast where you are now, what you might be able to afford to pay in during your working life, and importantly the effect this will have on your future retirement income.
So, all you have to do now is click on the link the below to talk to one of the team for your free initial retirement consultation, and in the meantime begin thinking about what you want your retirement to look like!
Source detail (1) – The Detail – PLSA – Retirement Living Standards
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