What does your dream retirement look like? What kind of lifestyle do you imagine? Understanding what you want to achieve is the first step. Is the key goal to maintain your lifestyle in retirement, or do you have different priorities? The changes in the retirement landscape mean people are adjusting their expectations for retirement.
There are so many “what if’s” and unknowns to take into consideration that retirement planning can feel daunting. What kind of retirement lifestyle can you actually expect? What if you want to (or need to) retire early? What if you or your partner needs care in older age? What if your children or grandchildren need financial support?
One-size-fits-all approach is redundant
Retirement planning will no longer consist of simply putting money aside each month and a one-size-fits-all approach is redundant. But with life expectancy still on the increase, the need to save and plan for retirement is becoming ever more critical.
Growing aspiration to combine work and leisure
The future of retirement is likely instead to see a fundamental change in people’s lifestyles with a growing aspiration to combine work and leisure to help manage the costs of a longer life expectancy.
Those saving for retirement will have different concerns and require solutions that are different to both those of the past and those offered by the majority of the market at present.
Protecting incomes and assets against unforeseen life events
Nor will retirement planning in future simply be a matter of generating a retirement income. The impact of the COVID-19 pandemic shows how protecting incomes and assets against unforeseen life events, resulting in periods of unemployment and ill-health, should play a fundamental role in protecting our ability to save for the long-term during our working lives.
Depending on how far you are from retirement, you will have different options, but it is essential to plan to take control of your retirement plans and not leave it to chance.
- Children’s pensions
- Defined benefit (or final salary) pensions
- Defined contribution pensions
- Personal pensions
- Self-Invested Personal Pensions (SIPPs)
- The state pension
- Annual allowance and lifetime allowance limits
- Busting myths about pensions
- Increases to pension age and new normal minimum pension age
- Pension freedoms
- Pension withdrawal methods
- The lifetime allowance
- Delaying retirement
- Generating income from investments throughout your retirement years
- Importance of a retirement wealth check
- Retirement goal setting
- Retirement planning
- Reviewing your retirement plan
- Staggered retirement
- Taking control of your retirement plans
- What can I do with my pension?
- What happens to my pension on death?
- Discretionary Fund Managers
- Market timing
- Minimising risk
- Multiple asset classes
- Portfolio insulation
- Pound cost averaging
- Principles of investing
Growing your wealth
Goals based investing
- Cash flow modelling
- Creating a financial roadmap
- Investment objectives
- Timescales and market activity and the impact of losses
- ‘What if’ scenarios
- Discussing legacy planning with your loved ones
- Inheritance Tax (IHT)
- Inheritance Tax Residence Nil Rate Band (RNRB)
- Lasting power of attorney
- Lifetime transfers
- Making a Will
- Preserving wealth for future generations
- Protecting your assets for the next generation
- Slicing up your wealth pie