We all look forward to the day when we can retire:
- Free from the stress and pressures
- To have time to do all the things we want to do.
- To read all the books we never
got around to.
- To enjoy leisure and sporting activities during the week.
- To take holidays
on the spur of the moment, and more often.
BUT will you be able to afford the quality of life that you dream of and
which you have worked so hard for? Will the stress and worry of work be
replaced with the stress and worry of money, or more to the point the lack
Whether you are planning retirement well ahead, taking early retirement, about to
retire, or already retired, then the earlier you take action the better.
Ask yourself these important questions...
- Have I made adequate provision for my retirement?
- Will I have sufficient money to enjoy the lifestyle I want?
- Have I calculated how much money I will need to live on in retirement?
- Have I arranged my investments to receive the income I require?
- Will my pension be sufficient however long I live?
- Is my pension secure?
- What effect will inflation have on my pension and other income?
- Will government changes in taxation affect my pension?
- Will I be able to afford long term nursing care if I need it?
- Have I minimised my tax liabilities, including Inheritance Tax?
Points to consider in calculating your retirement income:
will also need to take account of inflation and taxation.
- Weekly living costs
- Leisure and sports activities
- Dining out and entertaining
- Holidays and weekend breaks
- Income Tax / Council Tax
- Bills and out-goings
- House decoration and maintenance
- Replacement of appliances
- New cars in the future
- On-going motoring costs, car servicing and repairs
It is an extremely good idea to create a 'retirement budget' for you and your family. If you are in a company pension scheme, they should send you a statement every year, so you'll have a good idea of what your pension will be. You can also get a state pension forecast (click on the pension Planning link below), so you can see how much you'll get from that. Include any other source of income and calculate what your estimated income in retirement. Then, by thinking about the items above, calculate your anticipated expenditure so that you can see what your financial situation is likely to be.
Once you have done that, you can start to do some effective planning.
It is crucial to identify if there is a shortfall between your pension income
and your retirement needs and to take steps now to alleviate any shortfall.
By clicking the links below you will be able to access a range of information that will help you to plan your retirement finances effectively.