Retirement Planning – what’s that all about?
Unconsciously, we all know we need to put something away for a later date, and many of us do that.
Whether that’s to fund a new car, a new washing machine, next year’s holiday or this year’s Christmas, millions of us put money away each month, in order to be able to have something we value, at some point in the future.
But what about the big stuff?
What about saving to fund your lifestyle after retirement, when for many of us in the UK the State Pension will be our only income? For millions of others, a relatively small pension fund may assist, but realistically how much income will these provide? If we ask ourselves –”will that be enough?” then I’m sure that for many of us the conclusion will not be comfortable.
So why don’t we save properly for our retirement?
I’m not just talking about pensions, here (although they can be a very tax efficient method of providing retirement income). The job of a pension (fairly obviously) is to replace income you gained from your work, once you stop working. However, there are other tools in the box for this, depending on your own circumstances.
The problem is this – the majority of us haven’t identified the type of retirement we’d like, and the likely costs. So most of us don’t know how much income we’ll need to support our lifestyle in retirement, or the value of assets we’ll have to accumulate (pensions or otherwise) in order to provide that income. Surely they’re key components in robust, dependable retirement planning?
The Truth about Your Finances
Proper financial planning can provide the answer to this – on a personal level; bespoke to your own circumstances and financial needs. This is not about talking to a financial adviser about specific pension plans, policies or investment funds – they’re just the tools we might use to deliver the plan. A properly constructed financial plan will include a forecast of all of your future income, and the expenditure needed to deliver your desired lifestyle. It’ll overlay all of your assets and liabilities, and any savings plans you currently have. Most importantly it will identify any shortfalls, and give you the best chance of achieving the lifestyle you want.
Surely that’s an investment worth making?
If you’d like to talk about how to start YOUR retirement plan, why not get in touch?
Vital Wealth Management