As you progress through your working life, it’s easy to picture retirement through rose-tinted glasses, dreaming of the day you finally step away and retire. But how do you determine when that day should actually arrive or how much money or income you will need?
There’s no straightforward answer, as the timing of retirement depends on many factors unique to you. However, there are several key questions you should consider before making the leap into retirement…
What Do You Want from Retirement?
There is no one-size-fits-all model of retirement. For some, it may mean enjoying a quiet life at home, spending time in the garden. For others, it could be an opportunity for adventure, travelling the world, attending festivals, or indulging in hobbies and passions.
Perhaps you envision spending time caring for your grandchildren and enjoying precious family moments. By identifying what you want from retirement, you can better estimate how much your chosen lifestyle will cost and determine when you will be financially ready to achieve that goal.
Can I Afford to Retire?
Your ability to enjoy a happy, fulfilling, and secure retirement, along with the lifestyle you desire, will ultimately depend on your financial situation.
Take a holistic look at your finances to gauge how much income you are likely to receive in retirement. This includes:
- Private pensions
- Investment outcome
- State and workplace pensions
- Cash savings
- Social security benefits
- Other assets, such as porperty
It’s equally important to assess your existing debts, as these will reduce your available income unless you pay them off before retirement.
As You Approach Retirement Consider: Are you ready for the change?
Retiring is one of the biggest life decisions you’ll ever make. So, it’s crucial to consider the practical and emotional impact of leaving your professional life behind. Ask yourself:
- How will you spend your days?
- Do you have hobbies and interests that will keep you physically and mentally engaged?
- Do you have friends and family around to ensure you stay socially connected?
- Are you disciplined enough to structure your time without work?
- Is your job a key part of your identity, and if so, how will you redefine yourself?
Of course, you may have been eagerly counting down the days to retirement with no hesitation about leaving work behind. However, if you’ve thrived in the workplace and previously struggled to achieve a good work-life balance, transitioning to retirement could prove challenging.
Are You in Good Health?
Retirement should be a time to enjoy life’s pleasures, days out, holidays, family gatherings and personal activities. Therefore, you don’t want health issues to hold you back.
To increase your chances of enjoying good health in later life, it’s important to maintain an active lifestyle, manage any existing conditions, and look after your mental and emotional well-being. Investing in your health now is an investment in your future and could make all the difference in your ability to truly enjoy your retirement years.
Speak to Your Partner or Spouse
If you’re uncertain about when to retire, it’s a good idea to talk with your partner or spouse. By openly discussing your hopes and expectations, you can ensure you’re both aligned and working towards shared goals.
Seek Financial Advice Before and at Retirement
Navigating every aspect of your finances and calculating your potential retirement income can be both complex and overwhelming. However, a professional financial adviser can relieve much of this burden. Here at Howard Wright Financial Planning, our team of Chartered Financial Planners will review your entire financial situation and create a personalised retirement plan tailored to your needs.
We’ll consider everything, from your income streams to your debts, and recommend strategies to help you maximise your retirement income. Additionally, our advisers will help adjust your plan as your circumstances evolve, ensuring you remain on track to meet your financial and lifestyle objectives.
Retirement is a dream for many of us, so taking the time as soon as possible to carefully consider your finances, health, and lifestyle aspirations can help you achieve the future you want and deserve.
What to do Next?
To discuss if and when you can afford to retire and design a plan to get you from your current position to the desired one, contact Ashley Smith one of our Chartered Financial Planners at Howard Wright, you can call him on 0345 688 4939 or you can fill in our enquiry form below, it only takes 20 seconds to complete. We look forward to hearing from you and seeing how Ashley can help you plan for the future.
Disclaimer: This article contains information from sources believed to be reliable but no guarantee, warranty, or representation, express or implied, is given as to its accuracy or completeness. Howard Wright Ltd does not undertake any obligation to update or revise any future statements. Past performance is not a reliable indicator of future results. Investments can go down as well as up and actual results could differ materially from those anticipated. This article is for information purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any person as such, the information contained in this article is not intended to constitute, and should not be construed as, investment or financial advice. Appropriate personalised advice should be taken before entering into any transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. Howard Wright Ltd is Authorised and regulated by the Financial Conduct Authority.