How to start planning for retirement

Collaborative Post | You might be a few years away from retirement, but it’s never too early to get organised. Whether you’re married or single, it’s no secret that planning for retirement can get expensive and time-consuming.

Seeking financial advice only makes the process dearer. The FCA found that on average, financial advisers charge 2.4% of the value of your investments at initial consultation, plus 0.8% for each year of advice going forwards.
​
To make sure you can continue to live comfortably and organise your finances appropriately, you need to put some thought into it. No matter if you’re ready to stop work yet or not, it’s always worth getting familiar with some helpful tips to help you plan your retirement.

Photo by Towfiqu barbhuiya on Unsplash

Five tips for planning your retirement

1. Don't put it off

Firstly, it’s important to get your plans together as soon as you feel ready to. According to the Institute for Fiscal Studies, only 44% of UK men and 34% of women are still in paid work by the age of 65. The years leading up to your retirement go very quickly, so getting your plans together in good time will help you adjust quickly when you finish work.

It’s impossible to put a price on the peace of mind that comes with knowing you’ve prepared enough to have a comfortable and hassle-free retirement.

2. Work out how much you need 

When you think about the type of retirement you’d like to have, your monthly outgoings play an important role.

In the early planning stages, you need to think of a budget that’s realistic in helping you to afford your lifestyle. You’ll need to work out how much you need not just to cover your monthly expenses but to live freely and comfortably.

If you’re only in line for a state pension at the moment, it could be time to consider paying into a private pension through your employer or a third-party to boost your income in the future.
​
​3. Assess your options - and try to work for longer

There are several different ways to approach earning in retirement. You don’t need to stay in your existing role, but taking on a part-time job could help you to keep a little bit coming in on the side. If you’re feeling creative, you could even start a new business by selling your handiwork online or in person at craft fairs and markets.

Your financial health is just as important as your physical health. Don’t forget to keep looking for ways to boost your credit score in later life, as this won’t stop being important.

4. Focus on your enjoyment

Don’t forget that retirement is a period of your life that could last more than twenty years. While short-term planning is crucial to help you get your accounts in order, you should also take some time to think about how you’ll find fulfilment in later life. With more free time on your hands than ever before, you’ll be able to seize new opportunities.

5. Set specific goals

Lastly, why not set some goals to tick off for the first five years of retirement? These should include financial goals and some for your health too.

As for personal projects, you could aim to travel to at least three countries, for example, or perhaps you’d rather try to spend more time with family members. Achieving your goals will help you to feel a sense of accomplishment and motivate you to try new experiences too.

No matter your preferences, you should always make sure you’ve got something to look forward to. You deserve to try new things and treat yourself!


Disclaimer: this is a collaborative post