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Retirement – Just a few thoughts

After years of talking to Clients about their future financial and ‘life” plans, many of the same questions feature in the conversations. “When will I be able to retire”,  “How much money will I need to retire” and “How much should I be contributing” are some the most common questions.

As our lives move at an increasingly fast pace, due in part to longer working hours and the modern stresses of life for all of us, it is becoming more common for  people to want to start some kind of early or semi retirement, or to start a new life leaving the old job and pressured lifestyle behind for a new adventure.                                                                    Money in its self doesn’t guarantee happiness but it will give you choice in life and especially in retirement. Importantly it may also give you the opportunity to extend the quality of your life in retirement, with access to additional medical treatments and the “repairs” that we will all need as life expectancy continues to increase.

In truth the majority of us don’t save enough and we leave it later than we should to start making the necessary financial commitment to our retirement or second life plan. If you save a small amount now then you will get a small amount back in retirement. Its a hard fact but thats the way it is.

Think about this potential opportunity, as interest rates are at historically low levels on your mortgage, consider starting to use the money that you are not paying in high interest payments to energise your retirement plan. Increase your savings and gain the prospect of an early and better retirement. If you have more money in a poorly paying deposit account than you need immediate access to, review your retirement plans and take advice about your options.

Note that I have not mentioned the word “Pension” up to this point as they play only part of the retirement planning process, however Pension investments play a significant part in enabling you to do all of the things that we have mentioned and with the latest changes to the flexibility and access to your pension, it is possible that you could access your money from age 55 and thats not old. For some of us its also not that far into the future.    Pensions still have significant tax advantages and this will help to boost your fund and reduce your potential tax liability.

If your dream is to buy a camper van and drive into the sunset or to start making your own wine in Tuscany, or simply visit all the places that you always wanted to see and share the moments with your loved one,  start by talking to us at Johnson Gibbs about how to make it all a reality and not just a dream.

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