5 Ways to Prepare for a Happy Retirement
With one in five Britons working beyond the average retirement age (EuroStat) it’s now more important than ever to make sure you’re taking the right steps to prepare for retirement. Here are five helpful things to consider when you’re planning your future.
1) Set an informed goal – It’s always important in life to have a goal to work towards, whether it’s for a house, a car or for retirement. People often underestimate the amount of money that’s required to live out their retirement as planned, this means it’s necessary to first, estimate what’s needed for retirement and to consider your assets and income to create a goal tailored to you.
2) Saving – You’ve got to start somewhere, start now – No matter what age you are, saving for retirement always seems like a daunting thing. It’s hard to know roughly how much you’ll need let alone exactly, causing many to put off the pension process unnecessarily In the end, whatever your goals the earlier you can start saving, the better.
3) Know what your retirement needs – Retirement is expensive. If you’re looking to maintain your current standard of living it’s predicted that you’ll need 70-90% of your pre-retirement income (The Money Advice Service). It’s important to understand how you want to live throughout your retirement. Whether you plan to travel, downsize, or make further property investments.
4) Don’t touch your retirement savings – it can be tempting to dip into your pensions savings during hard times or when a project runs over budget. Unfortunately, to make sure you have a comfortable retirement it’s imperative your pension pot is treated as untouchable money. Not only is it difficult to replenish, it may result in reduced interest as well as hefty withdrawal penalties.
5) Ask questions – It’s important when thinking of the future to know all avenues that are available to you. The media often bombards us with news about pension changes switching between good and bad leaving people not knowing what to think.
No matter what your goals are for life and retirement, Ernest Grant’s Lifetime Financial planning will help you to achieve them, as well as preparing for unforeseeable circumstances and the occasional treat along the way!