What is your picture of your life in retirement? What things do you want to do? –Maybe see those places you’ve always wanted to go to, spend more quality time with the family or take up hobbies you never had time for?
There are many things to consider as you approach retirement, such as
- Where will you live?
- Will you remain fit and healthy, active and social?
- What is your retirement income likely to be?
- Will it be enough to provide for the things you want to do, for as long as you need?
- Will there be anything to pass on or enough left to look after your family?
Retirement is a huge life event. Your daily routine over the last 40 years or so is removed and your time is your own. You don’t have to be anywhere or do anything that you haven’t personally agreed to, but without a structured plan in place you may feel lost and adrift after the initial excitement of the first few months.
Financial planning is not just about money – It’s about helping you create and maintain the life you want, so that you can have the confidence to retire with the security of taking control of your finances.
Answering these sort of questions, lets you look at your affairs from all angles, take advantage of opportunities that look promising or deal early with any issues that don’t! Above all, regular reviews give you the confidence of knowing a keen eye is being kept on your finances.
Preparing for Retirement – Pensions
There are many different pension schemes available to support you during retirement. Put simply, a pension scheme is a way of saving for later life with tax relief on your contributions.
Employers can no longer force you to retire at a particular age, so it’s up to you to decide when to stop working. [Note – You can’t draw the state pension until you reach your state retirement age, which is currently 67 for most people].
With the new Pensions Freedoms, you could be able to draw your entire pension fund from age 55. This can be as a single lump sum, regular amounts or even ad- hoc payments. Remember only 25% of the pension fund is tax free but pensions are very effective when it comes to inheritance tax planning, as they are exempt from the Inheritance Tax calculation.
Retirement planning can be complex. I help you simplify your world. Financial planning is not just about money: it’s about helping you create and maintain the life you want to live and have control of your future. If this appeals to you, then why not give me a call or drop me an email and we will work together to achieve your goal.