- Opt for prudent choices now to secure optimal income in the future. Explore various tax-efficient saving methods tailored for later life.
- Determine the ideal timing and method for initiating retirement income. Assess available options and contemplate delaying income until more favorable circumstances arise.
- Explore options to enhance your annuity by comparing providers and considering lifestyle factors that may impact your health, potentially leading to increased income.
- Seize the opportunity of tax-free cash sums that may be accessible, recognizing the advantages of accessing your pension fund gradually rather than all at once.
Retirement - Plan ahead & look forward.
It could potentially be the longest holiday you've ever taken, but will you have both the health and the financial resources to fully enjoy it?
Recent data indicates that individuals planning to retire this year anticipate living off the lowest average incomes seen in six years. Retirees in 2013 are projected to have a typical annual income of £15,300, leaving them approximately £3,400 a year worse off than those who retired in 2008. With income having 14.7% less spending power compared to 2008, coupled with escalating living costs, declining annuity rates, and meager savings returns, financial challenges in retirement are more pronounced.
The concept of retirement has evolved for the 'baby boomers' now reaching retirement age compared to previous generations. A recent report reveals that:
- 39% of individuals aged over 55 plan to work part-time during retirement.
- 23% of individuals aged 65-74 were engaged in paid employment as of December 2012.
When will you be able to retire?
As life expectancy increases, it's notable that the most common age at death in the UK was 85 for men and 89 for women in 2010. Consequently, this implies an average retirement span of 20 years for men and 24 years for women.
Changes in retirement age
Until recently, there existed a default retirement age where individuals retired at 65, marking the end of their employment. However, this practice was phased out starting from April 2011 and has since been abolished. Consequently, individuals now have the freedom to work for as long as they desire, although individual companies may still set a compulsory retirement age if there are legitimate business justifications. It's worth noting that most businesses do not enforce a compulsory retirement age, and employees opting to work longer cannot face discrimination based on that decision.
With this newfound flexibility, it's understandable why more individuals are postponing retirement, hoping for brighter prospects ahead. Yet, it's essential to consider whether this approach aligns with one's long-term goals and well-being.
Plan for your Future
Your future's prosperity relies on making sound financial decisions today. With our guidance in crafting these plans, you can unwind and eagerly anticipate retirement.
Through a thorough examination of your current arrangements, we can pinpoint potential avenues to enhance your retirement income or explore alternative strategies to align with your desired lifestyle in later years.
Many individuals mistakenly believe that investment planning is only for the affluent. However, this notion is far from accurate, and ordinary people are indeed losing out on valuable opportunities.
Contact us today.
Ready to take control of your financial future? Contact us today for expert investment advice and personalised planning tailored to your goals.