The promise of a prosperous retirement – 3 tips

Living a time poor life is over when you retire.

No longer will you find yourself rushing from one task to the next.  You will have more hours available to spend doing what’s important to you – with the people who mean the most to you.

Time will be on your side as you map out your ideal lifestyle.

Your next birthday will be special. There will be more to celebrate – and more planning to do.

The kind of lifestyle you lead will in some part be down to your financial planning. Let’s take a look at some of the situations we may find ourselves in as we begin our journey into later life.

Longevity

Grace Jones, the oldest woman in Britain, is 112 years of age. If you were born today, your life expectancy would be 79 if you’re a boy and 83 if you’re a girl (according to the Office for National Statistics). If you are 65 now, there’s a 50 per cent chance you will live to see age 95. When Grace was born, she could have expected to live until the age of 54 which makes her achievement all the more remarkable.

The best time is now

  1. Retirement begins with a major change in financial circumstances. You will be calculating your net worth (assets minus debts) and taking into account changes such as selling your home and the value of your pensions. From this point, it is advisable to carry out a regular health check on your finances. Speak to your advisers and keep them informed of any changes which may affect your retirement plans. Review your current financial strategy to make sure it has the potential to serve you well. Find out whether different financial management strategies may help you and what potential there may be as a result of recent legislation changes. Are your personal circumstances changing and will this affect the tax you pay?
  2. Pension law changes in 2015 gave people more freedom and control over their pension pot. Reports of retirees going on a spending spree with their pension money were widely reported. But the truth is, most people wisely researched their options for making long term financial provision. Many people leave their money invested and only take money out when they need it, preserving funds for the long term. Before these changes, this would not have been possible. A final salary scheme was designed to provide a fixed pension income for life. They offered security. Now, we are given greater control over our pension funds and with this flexibility comes the responsibility for managing it competently. It is vital to seek professional advice and discuss with your adviser longevity, inflation, inheritance and all the opportunities and risks which become possible when managing your own pension. Your adviser will keep you up-to-date with Financial Conduct Authority rules when they change and help you make the right decisions to suit your personal situation.
  3. As parents and grandparents, it’s understandable we want to help our family financially. As we see it, it seems in some circumstances it may be more difficult for younger people to get onto the property ladder. This was something we took for granted in our twenties and thirties. The prospect of renting property long-term may be attractive for some people. But for others it is less so and they prefer to have the choice of buying a property and creating a home of their own. Some government funding is available to help people buy their first home, although there are restrictions. Advice is essential and, as is the case with all major financial decisions, you will need to talk to your pensions adviser, investment adviser, estate planner and accountant to make sure you all benefit in the best way possible.

Relax and enjoy the numerous advantages of later life, beginning with your first visit to Lakeshore at Burton Waters.

A new beginning at Lakeshore

Come and talk to us about creating your new life at Lakeshore.

Book your visit to the luxury housing park at Lakeshore, Burton Waters, Lincoln and find out why other residents love living here.