Retirement
People sometimes don’t start or give up saving towards retirement because they live in a country that provides a state pension. But for most, the state pension will amount to only a fraction of the income they enjoyed prior to retirement and their lifestyles will be substantially diminished. We are also living longer and with all the uncertainties in the world, it is more essential than ever, that you start to look after yourself, rather than hoping that someone else will do that for you. It is never too early to start planning for your retirement and if you have left things a little late then it simply means you have to accumulate wealth quicker. After all, having something in the pension pot is much better than having nothing at all.
When planning your retirement you need to consider the following:
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Select your desired or planned date of retirement and establish your short, medium and long term goals; review your progress towards those goals on a regular basis Identify your in-retirement expenses so that you know how big a pension pot you will need when you retire. (Use the income and expenditure worksheet to do this)
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Factor the income from your state pension into your calculations
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Monitor the value of your current fund if you already have one
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Understand what you can withdraw from your pension plan and what you can’t
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When you retire, try to continue to save
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Know your net worth at all times. (Use the personal balance worksheet)
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If your current provision is unlikely to be sufficient, review your personal expenditure budgets and seek professional advice. Be prepared to review the various pension products in the market and choose the best one for you. (Use the retirement planning worksheet)
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Ensure that the life insurance company is financially sound
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Devise investment strategies that will provide you with growth and income. Apart from contributing to your pension plan, consider investing in stocks and shares through unit trusts and OEICs, a strategy that should increase the value of your savings. Seek professional advice so that your efforts and investments are appropriate and on track to provide you with the returns you expect
