Choosing the right moment to retire can make all the difference to the quality of your post-working life. In the current economic climate – characterised by global trade wars, Brexit impact and stock market volatility – making the decision to retire might feel risky. Those who are lucky enough to retire at the top of a bull market are more likely to have sufficient funds to help them weather any future downturns. But, if you retire during a period of much more economic uncertainty, a resulting initial loss of income can greatly increase your chances of running out of money. For this reason, it is a good idea to regularly review your overall investment strategy. It is also important to recognise that retirement is a long-term decision and not one that should be unnecessarily influenced by short-term investment challenges.

If however your likely strategy is to convert capital into income through, for example, an annuity, then it could make sense to reduce risk (i.e. equity exposure) in your portfolio in the run-up to retirement.

Early retirement might be all the rage these days, but the obvious obstacle to retiring early is whether you have enough money to keep you going for 30, 40 or even 50 years. Life’s not cheap and the earlier you retire the less time your savings will have enjoyed the magic of compounding, a topic we’ve touched on here. But followers of the FIRE – Financial Independence, Retire Early – movement say it’s possible to amass enough cash to quit work and follow your dreams decades before your peers, by being frugal, making smart investments and extreme levels of saving. But, if the idea of living a frugal lifestyle isn’t your cup of tea, then to retire early you’ll need expert advice to ensure your savings and investments are working as hard as possible for you. At Investec, our role is to help you navigate life’s journey, to achieve financial freedom faster, unlock more opportunities and bring you the peace of mind of knowing where your money can take you.