Retiring is a very real life change with far reaching implications. The structure of your day, week and year changes overnight, affecting you and those close to you. People wonder how to fill their time, how to continue to feel productive and valued by family and society. If you’re considering your retirement, or if you haven’t even started, there’s never a bad time to review your plans and guide your decision-making in the years preceding it.
Relying on state help
The affordability of the state pension scheme in the long term is under threat. Review your entire post retirement income stream with your Financial Adviser to identify ways of maximising your pension over and above the state provision.
Plan for your retirement
Not many people enjoy the same level of income post-retirement, so get your debts paid off or factor repayments into your income. Try to get unavoidable expenses like a new boiler or kitchen repairs paid for while you’re still working.
Understand the impact of inflation
The things you buy can impact on your exposure to inflation, similarly the lifestyle you plan to lead in retirement. Planning ahead can make your money go further as you go through the stages of retirement; Out and About, then Less Active, through to Long Term Care.
We’re living longer, with many people living in retirement for more than 20 years. Work out your retirement income and how you will fund a long and comfortable retirement.
Structuring the journey ahead
We might feel ready to give up work and enjoy all the things our busy lives have prevented us from doing, but realistically, can you play golf every day for the rest of your life and still get the same sense of enjoyment you do on a Saturday morning? The weather isn’t always right for gardening and you probably won’t realise that you’ve had your life subconsciously organised for you from birth by school, university, work, parental commitments and your social life. Give your life new meaning and structure to avoid boredom. Consider volunteering,widening your social circle and slowing down gradually as you approach retirement.
Take professional advice
Remember that time you installed the kitchen yourself then had to get an expert in afterwards to fit it properly later on? Avoid the same mistake in your retirement by speaking to a professional adviser.
Review your will
Is the person you nominated as your executor still going to be alive when you die? Nominating someone from the generation below you might be a sensible choice.
Consider lasting powers of attorney
It might not be an easy topic to contemplate or discuss with others, but you can give yourself and those around you peace of mind by nominating someone for the role.
Being too cautious with post-retirement investments
Combat the effects of inflation on your retirement income with an investment portfolio comprised of suitable risk. Leaving it all in a savings account means you’re likely to suffer losses in value.