Retirement Planning
Retirement Planning
The journey to retirement is often a difficult one, with a number of speed bumps and potholes that makes the process entirely more uncomfortable than it might otherwise be.
Whilst the process of planning retirement can be stressful, engaging a financial planner to create a retirement road map can often keep retirees on track.
To achieve this retirees will need to take in consideration a number of components, including but not limited to –
- Income – what guaranteed income do you have in retirement? This may include State Pensions or Defined Benefit Pensions for example;
- Expenditure – what will your expenditure be in retirement? An interesting guide to expenditure in retirement is the picture to right, taken from Just's Retirement Planning Hierarchy of Needs;
- Assets - What assets do you have? Can these assets be used to provide an additional income in retirement? This may include ISAs, Unit Trusts, or Private Pensions;
- Liabilities – What liabilities do you have? This may include mortgage or credit debts. Will they be repaid prior to retirement.
This road map, once implemented, should not be mothballed when retirement arrives, but should be reviewed on a regular basis - retirement needs are not linear and life has a habit of throwing regular curve balls. Over time there is a good chance the plan will need to evolve to deal with these changes.
