Your 50s are a crunch time when saving for your retirement. There are some questions you might want to ask yourself to help you plan better.
When do I want to retire? Can I retire early? How much income do I want in retirement? Do I have enough in my pension pot to retire comfortably? How much will my state pension be?
A comfortable lifestyle means different things to different people. If you’re in your 50s, it’s important to make retirement planning a priority if you haven’t done so already. At this age, retirement is no longer a distant concept, and time is short if your plans aren’t on track.
The decision to retire will depend on how financially independent you are, how healthy you are, and even perhaps whether you have hobbies or goals you’ll want to pursue. Now is the time to think about your retirement income goals and the steps that you need to take to achieve your goals. One of the most important things to do in your 50s is to work out how much money you’ll need to retire comfortably. There are many other variables to consider, including the age that you plan to retire, your life expectancy, your income requirements in retirement, inflation, tax rates, and whether you qualify for the state pension. Given the number of variables, this part of the retirement planning process is not always straightforward.
Finally, in your 50s, it’s important to review your retirement planning on a regular basis alongside your personal finances. A regular review will ensure healthy progression towards retirement by checking that you are firmly on track with your retirement goals. This is the time to adjust your plan to fit any evolving needs and desires for your post-retirement years. We all change as people over time, and our pension pot needs to reflect our most current reality. Retirement planning is a continual process, and the more often you review your progress, the more prepared you’ll be for retirement and the more in control you’ll feel. At a minimum, aim to review your retirement planning at least once annually to ensure that you’re on track to achieving your retirement goals.
At Armstrong Watson our quest is to help our clients achieve prosperity, a secure future and peace of mind. Whatever stage you’re at, we’ll give you a clear idea of how much you’ll need to afford the lifestyle you want in retirement and provide regular reviews to keep you on track.