If retirement has appeared on your horizon, you may be thinking about what the future is going to look like. You may be reviewing your assets, questioning whether your retirement income will be sufficient, or wondering if there’s a better way to maximise your investments.
Or, you might not be thinking about it at all.
Did you know that 77% of savers don’t know how much they’ll need in retirement, while only 16% of savers can give a figure?1 In this case, it pays to be in the ‘few’, as the way we save for retirement has dramatically changed.
Indeed, things have shifted beyond recognition for retirees of today compared to those who began their working lives a few decades ago. The very idea that retirement might last up to a decade or more was fanciful, as was the notion of taking responsibility for their own pension savings.
Generally, we’re all living longer and in better health, meaning it’s crucial that you make sufficient preparations to safeguard your financial future in later life. According to the Office for National Statistics (ONS), a 65-year-old man can expect to live, on average, for another 20 years – a fifth of their total life span – while a woman aged 65 typically has 22 years ahead of her.2
Also, unlike previous generations, people will need to be more proactive in building up those savings. Having a retirement plan, which you can adjust along the way, is key. You want to make the right decisions for you, both now and in the future.
Tony Clark, Senior Propositions Manager at St. James’s Place, comments:
“The fundamental difference is that there is no one-size-fits-all anymore – everyone’s retirement will be different, so everyone needs a plan.”
While this may sound a little overwhelming, don’t worry – it doesn’t need to be. Aside from the jargon and some of the complexities surrounding pensions, the key steps are, in fact, very straightforward.
And you don’t have to do it alone. A pension adviser can help you to work towards your magic number – what you’re going to need to have a satisfactory lifestyle in retirement.
Claire Trott, Head of Pensions Strategy at St. James’s Place, says:
“Advice is really key in the run-up to retirement, to make a plan and stick to that plan as best you can, ongoing as your circumstances change, and again in retirement. It’s also important to take the right advice, at the right time for each individual”.
Planning makes perfect. If you’d like to find a professional adviser, or find out more about planning your retirement journey, contact us today!
1Pensions and Lifetime Savings Association, 2019