But Do the Numbers Stack Up?
For many people, the Christmas and New Year festivities offer a welcome few days off from the daily grind making it the ideal time for people to sit back, relax, and take stock of where they are and what they would like to be doing.
For some it’s a resolution to get fit or give up smoking; for others it’s more radical, as research has shown that January is the most popular time for new business start ups, proving that an extra spoonful of Christmas pud might just fire up that long held ambition to become self-employed!
For others it might be an ambition to retire or work less – but just like those that are going to get fit, quit, or start-up, retirement needs a plan – and in particular that plan needs to take into account what you are going to do with all that spare time.
Recent research by Hargreaves Lansdown suggests that almost half of those taking part in the survey were expecting to travel more after giving up work, and almost a fifth of women questioned said that they were looking forward to looking after their grandchildren. More than 90% of retirees expected to spend more time with their partners – but 3% of those surveyed were dreading the prospect!
But all of those plans (like them or not) are likely to cost, so it’s hardly surprising that not having enough money to have a happy retirement was considered to be the biggest fear for savers approaching the end of their working careers. Research from Aegon suggests that more than one in four people think they will still be working at the age of 70 and that 14% of people think they will still be paying their mortgage at this age.
So it’s clear that there’s plenty of work to be done on your finances well ahead of any planned retirement date.
Nathan Glaister, Managing Director of independent financial advisers Dodd Wealthcare Limited comments “People generally think that financial advisers only want to talk to people about savings and investments. But giving someone fully independent financial advice is as much about planning what you want to spend, rather than purely concentrating on saving. We can use financial modelling tools to demonstrate to people how long their money can last and show them how it all works in a very straightforward and easily understandable way”.
Nathan adds “Our job at Dodd Wealthcare Limited is to help our clients reach their dreams and aspirations – you set the goals – and we’ll do our utmost to help you get there”.
https://www.cofunds.aegon.co.uk/ukcpw/intermediary/news/will_you_be_payingyourmortgagewhenyouturn70.html (July 2018)
Hargreaves Lansdown study featured in City Wire New Model Adviser Magazine issue 618 page 29 (Dec 2018)