Having enough money will play a big role in your later years and getting expert advice to organise your finances well in advance is always a good idea. If your retirement is approaching, working with Veronica and Talis IFA means you’re in good hands. We can help you plan your retirement income AND work out what life will be like once you finally finish working.
Our 5-Point Retirement Plan
Here’s our high-level guide to help shape your thinking.
- Work out what you will spend in retirement: You may have paid off the mortgage and the kids may have left home, so you’re looking forward to having all that spare time, maybe to travel, explore study and visit. Be aware – Retirement may go in stages with more money needed at the beginning and at the end.
- Where will your money come from? What have you saved in your pension and other assets? How will you know if it Is it going to be enough? We can create a cashflow model to help.
- What about ‘disasters’: For example, the death of your partner when you’re sharing finances or the possibility of needing care? Make sure you have a safety net if life throws you a curveball. Again, a cashflow model could be helpful.
- Are you concerned about leaving a legacy? Most pensions are exempt from Inheritance Tax. Other financial planning can mitigate other effects of IHT or create legacies. Have you written your will to tell people what you want to happen to your assets when you die?
- Do you have a Lasting Power of Attorney in place? This is critical to protect you and your assets while you are alive. This gives someone you trust permission to make decisions on your behalf should you lose capacity.
The Non-Financial Side: Making Sure You’re Ready for The Lifestyle Changes Ahead
There are many things to consider as you approach retirement, such as planning your finances and making sure you have enough to live on. You plan where you’re going to live, whether you want to upsize, downsize, move to the seaside or even a different country. But what often gets overlooked is the emotional impacts of finally giving up work and having all that time on your hands.
You may be counting down the days to your “liberation” from the day-to-day stresses of working. But just like the first time you attended school or your first job, it takes some time to adjust to your new life. So here are our top tips for making the most of your new freedoms.
1. Picture your Retirement – What Does It Look Like? And How Will You Fund It?
What do you see? Where are you going to live? How are you going to spend your time, where are you going to go? Have you considered sport, volunteering, learning a new skill, family adventures? Once sorted, you can relax into your retirement time.
2. Make a Plan: Are You Ready to Stop? Wind Down Gently
Retirement used to be a date – now it’s more like a journey. If you can, ensure a smooth transition by retiring in stages. By easing off your workload over several months, you’ll get used to the idea of not working and be filling your time in other ways.
3. Develop a Routine
Just because you’re no longer subject to the daily grind doesn’t mean you shouldn’t have a routine. While a slower pace may be more appealing, structuring your days with intention is especially important. Make sure you schedule in personal time to do the things you enjoy most, such as reading or going for a walk. The key is finding what works for you and building a daily routine that fits your lifestyle.
4. Don’t Be Surprised If You Feel Strange in The Early Days
You’re used to a routine and a way of life which has just changed completely. Give yourself time and space to adjust. There may be times when you feel lonely or a bit lost, which is normal. If ill health or changes in your relationships temporarily scupper your plans, accept that this has happened, think positively, share any concerns with others and ask for help from people you trust.
5. Eat Well and Keep Physically Active
Healthy eating is important at any age, but when you’re retired it can be easy to fall into the habit of choosing convenience over good nutrition – because you have a little less energy or because you’re only cooking for one or two people. Eating well supports mental acuteness, stabilises your energy levels and boosts your immune system so don’t be tempted to skimp on healthy eating.
Staying physically active can help lower your risk of contracting a serious illness and it also can improve your strength and balance so you can prevent injuries and stay independent.
6. How will you spend your free time?
Give back to the community, travel more, learn a new skill? Many people see retirement as an opportunity to use and develop their skills and talents. Many charities and organisations would not be able to exist or go about their good work without the help of volunteers, so as a result there are thousands of volunteering opportunities available. It’s a great way to keep mentally and physically active, socialise and maybe make new friends.
If satisfying your wanderlust is on your list, then now is the time to make those travel dreams come true. This doesn’t have to mean taking a trip round the world – it could just be to the next county!
Your retirement is what you make it. It can also be surprisingly challenging, and it sometimes takes years for people to settle in. A successful retirement is made in small steps, and while an empty diary and the loss of a steady income can feel unnerving and unnatural, resist taking on too much, too quickly. Then again, you may have so many plans and rewarding activities, that you wonder how you found time to go to work!