How will I know if I can afford to retire?

Fears around retirement affordability are all too common and, in fact, all too avoidable.

Retirement, pension and tax planning advice is neither scary nor expensive, so why do people still delay seeking professional help and learning exactly what they need to do before retirement?

Fear of the unknown is obviously a big factor, with the country facing increased financial uncertainty due firstly to Brexit and now also to the Coronavirus, a lot of people could be avoiding facing facts head-on due to the fear of their situation being worse than they hoped or imagined.

Some people also genuinely prefer to be self-sufficient and to work out their financial future for themselves. By and large, though, it’s far better to take advice from the experts who have all the tax, pension, and financial planning knowledge and training at their fingertips ready to help you on your way to a secure financial future.

Your future financial happiness is too important to leave to chance, so let’s look at some of the big things we’re often asked to help with.

 Clients almost always ask us a variation on three key questions.

  1. Will I be able to retire at a point in time of my choosing?
  2.  Will I run out of money during my lifetime?
  3. How can I guarantee the quality of life in retirement I want to enjoy? 

As no-one knows exactly how long they’re going to live, nor exactly what future financial challenges they may face, these are actually very hard questions to answer. Pensions can be complex with so many considerations, including your family circumstances, pension rules and tax regulations.

There are other factors to consider too, such as your home/mortgage/lease, and whether you’ll continue to work part-time or stop altogether. The good news is that whatever your situation, and however you want to enjoy retirement, we can help set up bespoke arrangements that are right for your needs.

Ultimately, we can help you to make some sense of the multitude of different possible scenarios by: -

  • Making sure that your pension plans are as tax efficient as possible considering specific pension rules such as, the annual allowance, lifetime allowance and carry forward
  • Where needed and appropriate, testing different scenarios and building a picture of your future finances using cash flow modelling and future forecasting
  • Considering all of the legal UK tax implications when deciding how to draw an income from your retirement savings and presenting you your options

As you approach retirement, or even if it’s still a long way off and you’re determined to plan effectively for your future, you’re going to want to plan comprehensively for both your life now and your life in retirement.

Whether you’re planning to work until your full retirement age, maybe stop working early, or looking for advice on taking lump sums - we’re here to help with all your calculations and predictions.

Of course we can’t predict everything – none of us know how long we will stay fit and healthy for at any given time, and it’s even less easy to predict that in retirement, nor can we predict anyone’s life expectancy sadly. But as financial planners, we can, with confidence, plan for your financial future.

We want to help you to achieve the comfortable retirement that you deserve, and although we’ll need to know your living expenses/living costs, determine what your sources of income in retirement are likely to be, we won’t be gathering too many personal details from you - and we’ll certainly be safeguarding and protecting your personal data for you.

So while we won’t have the answers to everything, and we certainly don’t claim to hold the meaning of life within our walls, we do have a lot of the answers you could be looking for in terms of your financial health and financial future as you plan for your life in retirement.

We understand that it can be a little bit stressful talking to a stranger about your life, and particularly when it comes to talking about financial matters. However, you can rest assured that as professionals we are truly here to help, not to judge, and we pride ourselves on our ability to communicate effectively with all our clients. We won’t blind you with science nor make things too technical and difficult to understand.

There’s no easy way to bite the bullet and start talking to us, obviously – all we can do is make the whole experience as pleasant, informative, friendly and impartial as is within our power to achieve. We’re very much a family-friendly team here, and we like to treat our clients in a professional but friendly manner: there’s nothing to be afraid of from contacting us, and the sooner you get in touch with our financial services team, the sooner we could be helping you!

 

 

Start planning your future. Speak to us today.

Contact Us

Seventy Financial Planning
The Apple Store, Haggs Farm,
Haggs Road, Follifoot, Harrogate,
HG3 1EQ

01423 611004

[email protected]

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