Are you relishing the arrival of your retirement, whenever it may be due?
A recent survey from Aegon found that whilst people continued to have positive aspirations for retirement, there was nevertheless a widespread lack of confidence that retirement would actually deliver.
With careful planning though, you can address all of your potential concerns and ensure you are ready for a happy and productive retirement. Below, we look at some of the the most common retirement worries and how they can be mitigated by having one eye on the detail.
1 – Will I have enough funds to last throughout my retirement?
The best financial advice and careful planning is absolutely key here, especially in light of the far-reaching Pensions Reforms that come into force from 6th April. Having greater control over your pension means yet more serious decisions to make. New retirees are faced with a complex range of choices as it is, often having several pension pots to juggle and likely scenarios to plan for. Not all pension providers are intending to adopt the new flexibilities and transferring to new plans can take weeks, so carefully working out what you have and what you want to do with it is key.
2 – What if my health fails?
Your health is paramount to enjoying a good quality of life. Private health insurance schemes can often give peace of mind, but choosing the wrong one can be costly. A recent study found that one in four of us will require care in later years and the cost can be astronomical (1 in 10 of us will incur costs over £100k). The Government’s new care capping rules for 2016 will also have an impact. Preparing for and thoroughly planning for the worst whilst enjoying the best of your retirement is both prudent and very possible.
3 – Will I get bored and lonely?
Retirement should be the time we get to do those things we have always dreamed of, but if you haven’t settled on a bucket list and are worrying about stagnating in your leisure days, why not retire in a staged manner, cutting down hours to part-time as you gradually accustom yourself to the change? Many retirees favour this approach as it keeps them mentally and physically active, they continue to feel useful and the income is always handy for those future plans!
4 – I might be fleeced by a scam artist!
The most radical change to the pensions industry in a generation has unfortunately spawned a number of opportunists out to fleece savers. An increased number of unregulated investment firms are actively pursuing over 55’s and their newly free pension savings. High-earning professionals, you may be surprised to learn, are the most likely to fall victim. Always make certain that the firm you are dealing with is regulated by the FCA and get in touch with the regulator directly if you are uncertain.
5 – The Unexpected
Everyone fears the unknown and no matter how sensible we are and how much preparation we do, we cannot plan for every eventuality. The recent financial crisis, for example, dented the confidence of many. The only sensible approach is to make sure that your investment portfolio has a balance of risk appropriate to your own approach. Having your finances in order and having someone to turn to for financial advice at difficult times is priceless.
If this blog has raised any questions why don't we have a quick chat?
MD & Certified Financial Planner
A brief meeting might be of interest, especially if you’re unsure just how wealth management and financial planning could help you.
It would only require the investment of an hour or so of your time, and the coffee’s not bad either.