Retirement used to be reassuringly predictable. On your 60th or 65th birthday you switched overnight from full-time employment, perhaps via a gold watch presentation, to having time on your hands you didn’t quite know what to do with.
At the same time, you bought an annuity with the money in your pension pot you couldn’t otherwise get your hands on.
Today, everything is different. Not only are we living longer, healthier and more active lives, most of us can now decide when, how, and even if, we retire.
With the introduction of pension freedoms, there is no onus on us to cash in our pensions at set ages, and instead we can take our pension money any way we choose. But, with this freedom also comes responsibility, and for some, uncertainty.
Many of us have no clear plan for what we want from our retirement, and even more of us underestimate how much money we will actually need for it when we do. Looking at retirement as a whole, our pension isn’t necessarily the first thing we should be thinking about when it comes to planning where our retirement income will come from.
Instead we should be thinking of all our savings and investments collectively and getting advice on the most efficient strategy that incorporates them all, in order to meet our needs. And, money aside, what we each want from our retirement is unique. So, whether your ambition is to simply spend more time with the grandchildren, go back to studying, start a new business or take on an ironman challenge, a truly fulfilled and rewarding retirement requires as much planning as your career or business did.
Life expectancy at age 65 has increased by 40% for men and 23% for women since 1980.
That equates to having to find the means to fund 5.2 and 3.9 more years in retirement respectively.
* ONS, National Life Tables 2010 to 2012
After more than 25 years in my career – I found myself in a position whereby I had several company pensions, but no idea what they were, how much they were worth or how to find out.
Start planning for your retirement today
Know when to retire
In retirement, as in comedy, timing is everything. Financially and emotionally, choosing the right moment to retire can make all the difference to enjoying your golden years.
Don’t leave it too late. Act now.
See how we can help you plan your ideal future.
Need help planning where your retirement can take you?
To send us a message or have an informal, no obligation, conversation about Retirement Planning, please get in touch with your local office or one of our Financial Planners.
Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.