Many of us pay no attention to our retirement plans, other than daydreaming about the time when we won’t have to do the dreaded commute every day. You think retirement is for old people, not when your young and vibrant, you have plenty of time to get around to dealing with your pension or other savings for later life. However, time flies by and before you know it you will be a stage in your life where retirement is a real possibility. If you want to avoid retirement regret, now is the time to take action or you could find yourself having to stay working long after you wanted to as you don’t have the necessary funds to support yourself.
Retirement is a young man’s game!
The best time to plan for those later years and start financially investing in your future is when you’re young. It’s much easier to save a significant amount of money over a long period that to try and create that same financial security over only a few years.
It will never be the right time
If you are waiting for the right time to start planning for retirement, then stop! There is no such thing as the right time.
You may want to prioritise travelling or saving for your first home. Enjoy yourself a little and still have plenty of time to get back on board with saving for the future at a later date. Perhaps you don’t earn very much and contributing any of that salary feels like a hardship. You promise that when you get that salary raise or job promotion, you will increase those pension contributions above the minimum.
However, as your salary increases or you get a better job, other aspects of your life also get an upgrade. You want to move to a larger property, get married, have a family, pay off debt accumulated during those hacienda days of your twenties. Financial commitments don’t go away, they just change.
Good habits are the key to success
Changing financial habits later in life to try and bolster your retirement plans can be much more challenging than creating a good habit from day one and sticking to it.
If you prioritise your future as soon as you start your working life and create habits that support your life goals, then you won’t have to adjust your budget in the future. It will have been built in from the start, you will be used to any financial sacrifice you make. It will become second nature, and you won’t be struggling to adapt a challenging financial situation later in life to provide security for yourself.
Life is for living
This is true when your twenty as much as it is when your 60, 70 or 80. It’s not about putting your dreams on hold for when you’re young. By starting early, you can find ways to utilise your money to support the aspirations you have in your twenties and thirties while still providing for retirement. One of the reasons this is a possibility is because time is on your side.
When reaching retirement age, you will still have that same zest for life you did as a young person. You don’t want to limit your opportunities due to poor planning. If you dream of going on a world cruise or emigrating to foreign climes, you want to have the funds to achieve those dreams. To say adios to working life and aloha to the next adventure.
Don’t rely on auto-enrolment
You may be thinking your retirement plans are all taken care of as you contribute to a company pension through auto-enrolment.
However, do you know how much pension this will potentially give you at retirement? How will that be affected by inflation and cost of living? Do you plan to take time off work later to have children or start your own business – how will this affect your retirement plans?
Don’t just brush the thought aside and assume you will be financially secure in the future. Take some time to really understand what auto-enrolment will potentially give you in your later years as a pension. You may discover that your contributions are sufficient for the life you wish to have at the end of your working life. Or you might find that you need to look at additional ways to build up financial security for the future.
Either way, you need to understand your current position and future costs to make the best financial plan that will provide adequate income post work. Find out more about retirement planning with our complimentary guide.
Start planning today
Don’t procrastinate and potentially put your future at risk, start planning today. Consider seeking professional support to create a financial plan that supports the desires you have for your life. A Life Centred Planner puts you at the centre of what they do. Getting to know you, your values and hopes for your life. They work with you to create a bespoke plan to achieve your goals and support you over the years to ensure you stay on track in an ever-changing world. Giving you peace of mind and professional advice to create a brighter financial future.
Contact us today for a complimentary 1-hour consultation with one of our Life Centred Planners to find out how we can help you create a retirement life you are excited to live.
Further information
If you found this information useful you may also want to check out the following:
Mike Robertson Associates Limited is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority. See Full Details.
They help individuals, businesses and families achieve the best quality of life they can with the resources they have. MRA specialises in retirement planning, cash-flow analysis, taxation, savings and investments, life centred planning and much more. Life Centred Financial Planners are passionate about working with you to help you achieve your life and financial goals, get control of your finances to enjoy a brighter financial future.
Based in East Sussex we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.