If you need help with your retirement planning in the UK. Helping you pick your retirement date with least amount of compromise and most enjoyment from your retirement in the UK. Our retirement planning and retirement lifestyle articles and videos help you create the retirement fund you need for a successful 3rd and final act of your life in UK.
Retirement Planning UK and Making Most Of Your Retirement in UK
A change of mindset today may help you improve your life before your retire and after retirement:
- Know what you are planning for – a clear retirement plan will provide both motivation and a discipline to achieve what you want for yourself in retirement in the UK.
- Know what the retirement costs are – the retirement lifestyle you want maybe within your reach, and maybe not!
- Know what your priorities are – you need to know what is at the bottom of the list that can be sacrificed and what under no circumstances can be cut.
- Know what you will miss when you do retire – maybe full retirement is not a good idea for you? Perhaps easing into retirement via part-time working will help you adjust to retirement life more gradually so you have the best of both worlds.
- Incorporate the cost of inflation in your calculation of the size of the retirement fund you will need to maintain your retirement lifestyle until the end – for sometime now UK inflation has been relatively benign. However in the 1970s and 1980s UK inflation was more than 100 times the level it currently is. This could decimate your retirement lifestyle if it was replicated during a time you only had access to static retirement income levels.
- Do not put all your eggs in one basket – understand the importance of risk diversification. Not all assets will increase or fall in value at the same time. Spreading your retirement fund across diverse assets will give your retirement portfolio time to accommodate valuation fluctuations and still maintain the level of retirement lifestyle you want for yourself.
- Bear in mind relationship changes – divorce, death other than your own and other unwelcome curve balls can split your retirement fund in two or drastically cut your retirement income per year thus damaging your retirement lifestyle.
- What do you want to leave to your dependents or if you have no dependents what do you want to do do with the money you have not spent – restrictions in spending power or the realisation you need to spend every penny should influence your retirement planning.
- Saving a little over a long time is much better, on average, than starting to save for your retirement late in life – your retirement fund will hopefully grow faster over the long term without you needing to put as much money into the pot with features like compound interest supporting the increase in your retirement savings.
- Do not waste money over your working life – what is wasting money for one person may be critical to the next persons enjoyment of life. However, most things can be purchased cheaper with a little effort.
- Be clear on what your incomings and outgoings are – the difference may allow you to boost your retirement savings or alert you to a need to either change your lifestyle before retirement or change your plans for your retirement.
- Beware of the trade off between risk and reward – it is unfortunately a truism that if you want your retirement savings to grow without you contributing more to the pot yourself from your working life earnings then you must accept that low risk investments bring less return on money invested. Higher risk investments may bring greater returns, but could also mean you lose some or even all of your money.
There is now off the shelf retirement savings plan you can adopt. Even if there was, it may not work for you over decades as your life circumstances change over time. Your retirement savings plan needs to grow with you.
You can live the best life before retirement and after retirement. However you may need to work a little harder at making the best of your life to live the best life you can.
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