What it takes to have a prosperous retirement

No-one needs to tell you that the better you manage your money the more prosperous your retirement will be.

Life after work and retirement goals

For anyone wanting to get the most out of their pension pot and investments, Alvin Hall in ‘Your Money or Your Life’ recommends a daily spending diary.

While this may seem somewhat in the extreme for some people, it serves the purpose as one of many wise actions to take to enjoy life now and preserve what will be necessary for your long-term health and enjoyment.

Research the Sunday Times Rich List and you’ll find they share a steadfast approach to money management.

To become a money magnet, you must be a wise investor, ably assisted by your stockbroker, financial adviser, accountant and tax specialists who are indispensable to you throughout the up and downturns in the money markets.

The best financial advisers will answer all your questions about the ways in which your investments are being managed and you’ll decide your attitude to risk balanced against reward.

After benefitting from compounded growth while saving in your pension scheme, you now want a balance where your pension pays enough for you to live a comfortable lifestyle while preserving sizeable sums in longevity.

A comfortable retirement means something very different from the one our grandparents knew.

To us a comfortable retirement means abundant travel, leisure and entertainment. To our grandparents these were rare luxuries. But the difference between their generation and ours is the expectation of reaching our 80s and 90s with the ability to live a full and active lifestyle. Our grandparents were likely to survive only into their early 70s meaning they had a much shorter retirement to finance.

Budget

By the age of 55-60, many people will have paid off most of their mortgage. Moving to a brand-new bungalow such as Willowpool will cut from your budget the maintenance and repair costs you’ve been used to forking out for in your previous bricks and mortar property.

Eventually, you will be mortgage-free and enjoying the benefit of no longer paying to live in your home – something those who rent will be unable to achieve.

Having stopped work, a costly commute will be out of your budget meaning more money saved.

There will be different expenses to provide for as you become older such as health and medical care. Keeping a close eye on the performance of your investments with the help of your adviser will continue to assure your prosperity while financing a comfortable lifestyle today.

Spending patterns may change when you want to help grandchildren and adult children in education, start on the property ladder or make gifts to help ease them through the expense of life. You may want to find out from your financial adviser how to give your children money without compromising your own situation or causing a tax liability.

You don’t have to be constantly attending to your finances. Allocating a couple of hours once a month may be enough time for you to spend on working out any changes and keeping on top of your income and expenditure.

Learning to love accounts and spreadsheets may be dull but the rewards are not. There’s nothing depressing about seeing a large positive number in your accounts and the comfort of knowing you are in full control of your money with a financially secure long-term future.

Nest egg

When you’ve worked out your budget, how much do you calculate your income will be compared to your pre-retirement income? You may be looking to keep some money in investments that preserve your capital. Make an appointment with your financial adviser to review your investments twice a year.

The key to your happiness in later life is to have a retirement goal. You will have ideas and dreams and projects to fulfil – and having your finances well-managed will give you the mental freedom and capacity to enjoy life.

Luxury retirement at Willowpool

Visit the luxury Arbor Living homes at Willowpool, Lymm. Book a viewing by phone or send an email and we’ll call you back when it’s convenient for you.