"The trouble with retirement is that you never get a day off."
Abe Lemons
Professional basketball player : 1922-2002
Life after work
We work all our life to retire.
Retire from work not life.
You’ve paid your dues, and you’re ready to kick back and relax into the good things in life. However, have you made sure you’ve got enough saved up to tied you over during these glory years? To make sure you’re clear on what sort of numbers you’re looking at, we’ve pulled together a handy guide of what to keep in mind when it comes to life after work and the pennies you may need to support it.
Here To Help
Managing your income once you’ve left work is seldom as straight-forward as people think. There’s much to consider and many financial responsibilities you will have to ensure you’ve covered before you can start enjoying the good times.
Across all the pages in this section, we provide a series of guides to help you find what you should be looking for, particularly when it comes to managing life after work, so when that time comes, we can help you…
CHOOSE THE ADVISER WHO UNDERSTANDS YOUR NEEDS.
How do I work out what I might need?
Ideally to help get a basic understanding of how much you need to save, you need an idea of how long you’re going to be in retirement, and how long you’ll live. Your lifespan is a lot harder to judge than retirement plan, but you can manage to work out a rough plan based on your health and lifestyle.
Nowadays it seems that an average 40-year-old who retires at 65 could live until their 82. However, if you keep fit and healthy, you could end up adding another 5-10 years to this. At the end of the day, you need to be prepared for any eventuality life may throw your way.
Have a look at our Pension Plan guide to gain a little more insight into tips to work out exactly how much you may need.
What happens if I
outlive my plans?
Although great news for you, it could put a little dampener on your carefully worked out savings. However, there are several ways to combat this and make sure you can gain a little more retirement income. These include:
- Equity release
- Downsizing
- Renting out a room
If none of these are an option, it may be that you become solely reliant on the state pension, meaning you may have to cut out a few luxuries.
What costs are there likely to be?
Your target income should suggest that your needs and spending are roughly the same during the whole of your retirement. However, with the many twists and turns in life, this is unlikely to be the case, and you’ll definitely want to treat yourself every once in a while. These additional costs could include:
- Holiday
- Home repairs/improvements
- Dental/Medical bills
- Vet Bills
- Helping out children
- Saving for care costs later in life.
Work out how much, if any of the above you are likely to need, and make sure you include that when doing your maths. It’s good to have room for contingency.
Another factor to remember is the cost of living, which is likely to increase greatly by the time you retire (it currently doubles every 25 years!) Bear this in mind when doing your sums!
What are the rules about Pension access?
Are there any rules? Maybe not in life, but when it comes to pensions, afraid so!
You might have started accessing your pension pots, but still be keen to keep paying into them on a regular basis. This is possible; however, you may be wise to take advice.
Are there any more options to guard your pension?
To be completely sure you’re safeguarding a guaranteed life income, an annuity may be a better option to link to your pension pot as opposed to a drawdown. An annuity never runs out, however annual income can actually result in being lower.
Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email [email protected]
Or complete the contact form below and your details will be passed onto an adviser who will contact you to make a free consultation appointment.
Contact Us
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Email: [email protected]
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Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381
Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042
Will writing and some aspects of tax planning are not regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on a mortgage.
Capital is at risk and you may get back less than you invest.
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