What to ask yourself before you retire
15 August 18  /  Insights

Retirement is an important stage in our lives. Mostly, we look forward to it, but it also brings some worries and stresses our way, with many questions cropping up.

Below we have compiled a list of questions you should ask yourself before you consider retirement.

1) Am I financially secure to retire?

Ask yourself ‘can I afford to retire’ and ‘what do I think it will cost?’. Here, you should calculate all of your expected retirement costs, including any long-term care you may require and if you have any more debts to pay off, such as a your mortgage, alongside how your life will change and how you will afford to live.

If you are just starting a retirement plan, you should consider a realistic ballpark figure that you could comfortably live on each year, taking into consideration everyday costs such as running a car and groceries, as well as what you would like to do in retirement, and compare it to the amount you already have saved or set aside.

2) Where will my money come from?

After deciding whether you are financially secure enough to retire, it is important to consider where your money will come from to do all the things you would like to do and to sustain your lifestyle.

Whatever stage in your life you are at, it is probable that you considered this stage in your life and perhaps started saving for retirement, started a pension scheme or began a retirement investment, but it is also important to consider State pensions, whether you will downsize on your house or sell your business.

Most people are unaware of their retirement income and worry that they will not have enough, so having a better understanding of where it will come from can offer some peace of mind and clarity.

3) When do I want to stop working?

Do you and your partner want to retire at the same age? You will then both be giving up a regular income at the same time. Or perhaps you are considering early retirement? Whilst we cannot know exactly your life expectancy we can predict, so early retirement means saving more those extra few years too.

4) What are my retirement plans and what will they cost?

Decide how you want to spend your retirement and how much it will cost. Perhaps you are waiting for retirement to go on that special holiday or to buy a new sports car? Whatever it is, estimating how much your plans will cost will help to ensure you have enough to do the things you want to.

5) Are there any tax considerations?

Planning retirement as a couple can have more advantages over planning as an individual, including maximising the tax benefits of pension contributions, holding assets in the name of the person who pays the lower tax rate and making gifts. You should aim to make retiring as tax-efficient as possible.

If you can answer all of these questions, then you have probably thought of everything and are ready to retire! But don’t worry if you can’t as planning for retirement isn’t an easy task and that’s where we come in. Our Lifestyle Financial Planners can help offer some clarity on your retirement plans, helping you to answer these big questions and most importantly, helping to ensure you are financially ready to retire when the day comes.

Find out more about our Retirement Planning services here

Or, get in touch with one of our Lifestyle Financial Planners by calling 01865 208012 or click here to email your enquiry.