Retirement is going to catch up with all of us unfortunately. Time will not be waiting for anyone.
This goes for the rich right the way through to the poor and homeless. Whether you want to continue working at the age of retirement or pack it in – you at least want to have the choice of what you do. No one wants to be the person that is forced to work even though they don’t want to. Being in the position where you are comfortable enough to take care of everything for you and your family by the time you are older is where you need to be. Your local IFA in London is always on hand to give you knowledge about important topics!
Struggling with the present and the future
Most clients that comes to us for support struggle to balance between the present and the future. That is, they don’t know how to prepare for the future with what they are doing right now.
80%+ of people are not prepared for retirement. Why? Because they are not planning correctly for the future. They are not investing their time and energy correctly to have a surplus in the future so that they no longer have to work for all their income.
For those people that have a lot of aspects of their finance sorted out (they have a pension, a few investments etc.) – even these people could take more measures in order to sort out their futures so that they are more stable. Simply put, there is always something else you can do or add to make your future that little bit more stable.
Overall, it is about getting the right balance. You could be doing every single thing right now to guarantee your future in retirement will be a glowing success (should it definitely come round). However, doing this might only lead to enjoying the present far less. So we would say it is worth getting some good checks in place so that when the time is right, you don’t have regrets of not living and being in the moment enough in the past, but having your retirement and future sufficiently sorted for when the moment inevitably comes.
Time will pass, so the day WILL come. An even scarier thought is that we don’t reach retirement and it’s our family that still reach that age but we didn’t do enough to support them now that they are there.
So, without further ado, let’s look at what you CAN do to prepare for the inevitable future.
Get started early
We do not know the average age of the readership for this website but assume there must be people here of all ages. In any case, starting your financial contributions to your later life is never going to be a bad move.
However, with that said, it is never too late to get started. So if you are already into later life, the best time to start is always today.
What seems like a vastly complicated issue (finances, retirement, preparing for the future) has actually been setup by the governing bodies to be as simple as possible. Generally, you won’t need to be spending weeks researching things before you implement them. You can effectively and efficiently start improving your future using things that are in place already (financial advice, investing, pensions etc.)
Seek professional advice
No matter what it is you want to know within the financial world, an advisor will be able to help you out. That is our job. It’s what we do day in and day out.
Investments are probably your best bet when it comes to preparing for retirement and getting an advisor’s help.
Banks no longer yield the kind of percentages they used to (you actually used to be able to grow your money in a bank!)
As independent financial advisors, we can give excellent investment advice for clients as we are market specialists. You could easily get an investment for yourself with little to no yield. We have schemes in place ready to get you decent percentages on your money that you likely won’t be able to find by yourself.
Think about your future
This sounds obvious and anecdotal but it is probably the most important advice. If you are not actively thinking and considering the future, you will set yourself up for failure.
If you are spending all of your money now and don’t save anything for the future, will you have enough money then?
Do you know how much of your mortgage you’ll be paying in the future.
How old will your children be?
Is there a kind of lifestyle you want to live up to in the future?… Are you on track to be able to live under those demands? These are all questions you can ask yourself.
Save if you have to
Most people should be saving. Those with children and other additional responsibilities should definitely be putting money aside for the future. To add to the point in the last section – maybe you want to live a particular lifestyle when you reach retirement age. Maybe you want to go on several holidays a year. Are you going to have the money to be able to do that? How much would you need to be setting aside in order to hit realistic numbers to make that sort of progress?
Pensions are a safe bet in securing future money. If you are already employed, you probably already know about workplace pensions as they become mandatory in 2012. Slowly but surely, just about every company out there now offers a workplace pension. You can define the amount you want to pay into the pension and have a good understanding of the amount you’ll get back in the future.
Although virtually nothing is guaranteed in this life, pensions are a fairly safe investment and will pay you every month when you are older. They are unique in that way and you can manage your payments today so that they don’t affect your life in the future too much.
P.S. – We found this article from Age UK about an important aspect of retirement. It is actually on preparing emotionally for retirement. This is more their bag so we will leave this if you are feeling weird about retirement approaching. It’s a natural feeling and we are sure many are feeling this way.