How long do you spend planning for your retirement?
We are all guilty of it. We spend hours flicking through netflix looking for a new tv show to watch. We search for days to find the perfect holiday, checking several location options, comparing costs and planning what we will need to pack was in advance.
The same cannot be said for our retirement planning. Often years in advance it can be easy to put it back and plan to do it another day. In 2017 LV= found 51% of respondents aged 45-54 didn’t think about their retirement at all last year. Those that did, spent more time planning a holiday than their retirement. They spent an average of three hours and 42 minutes planning their retirement, compared to five hours 42 planning a holiday.
A holiday generally lasts between one and two weeks but your retirement with increased life expectancy can be anything from 1 to 20+ years.
Top Tips for Starting to consider your retirement plan
Dedicate some time
- Set aside an hour to list down how much you currently earn and how much you are putting away for your pension.
- If you are worried that you have lost pension details you can check this website https://www.gov.uk/find-pension-contact-details
- Think about what type of retirement you would like. Do you want to sit at home with the grandkids every day or do you want to be on a different holiday every other week? Maybe you want to run a tea shop by the sea? Varying lifestyles will require larger pension pots than others.
- Don't forget you will also receive the state pension. Although not usually enough to see people through retirement it is a good starting point to understand when it kicks in and how much it will be.
- Consider other investments and savings. If your mortgage will be paid off then that will be an expense you don't have to pay out when retired.
If even those steps seem too daunting and you have no idea where to start with your information, consider finding a professional financial advisor. As advisors we go through your hopes for your retirement, your current plans and future expectations to work together to put in place a plan that should see you set for the retirement you want but also allow you to live within your means for the now.
And that's it. Once you have the start of your plan it is simple to review on an annual basis to check that you are still on target. Taking the time once per year helps avoid any disappointment conversations years down the line when you may realise you have fallen short of your retirement plans.
Now, back to Netflix to fill the void now that you have binge watched the whole season of Queer Eye.
The value of pension and investments and the income they produce can fall as well as rise. You may get back less than you invested.