Retirement
— will my current savings and pensions be enough?
If you have failed to plan and you are close to retirement it is still possible that you have enough. It is also possible that you do not have sufficient and need to make some hard choices. Do not make assumptions get the facts. Which ever is your situation you need to know you cannot go on hoping for the best but fearing the worst. It is time to take stock.
The starting point is to make lists. You will need a list of:
- assets : include your home, any other property, savings, investments, potential inheritances, money owed to you etc.
liabilities, such as mortgages and loans
Your income after retirement by sources e.g. employer pension,AVCs, private pensions, state pension, other state benefits, current investment income, rental income, etc - essential expenditure
- none essential expenditure
- other planned capital expenditure
Having made your lists you will need to take a view on what you expect the average annual inflation rate may be. (your adviser will help with this)
You will also need to know what your life expectancy and that of your partner may be. We can help you with this.
You now have the basis to start to plan.
Do not be tempted to hang on to assets that are not productive enough but when disposing of them beware of the capital gains tax.
Advice. A good financial planning adviser has the experience and knowledge to help with the allocation of your assets in order to achieve the balance of growth and income that you need. Growth is important unless your life expectancy is very short. Income must be secure and sustainable.
It is essential that your plans are formally reviewed at least once a year.
Also:
- Will my current savings and pensions be enough
- How can I improve the situation
- Do I have to move to a smaller house
- Should I pay off my mortgage
- How will I cope with the cost of care if I become frail
