What’s Needed to Make the Dream Real?
Retirement is that ultimate elusive dream for many people of working age, but it requires meticulous planning and preparation. Furthermore, if you want to meet that goal of giving up work before reaching state pension age, then you must start as soon as possible to make sure your financial affairs are in order.
First of all, ask yourself why it is so important to finally hang up the work tools. It’s a life-changing milestone. Some will focus on their retirement because they’re under immense stress in their jobs, or maybe they are generally unhappy. If you still have some way to go as you approach retirement, it’s advisable to consider reducing hours to enjoy a better work-life balance or leaving and styling yourself as freelance.
Make Sure the Plans Are Realistic
Before you make the decision, ensure your plans are realistic and achievable with the money you have in the bank so far. If you haven’t been saving enough and feel you need to put more away, then it’s best to seek professional help from an independent financial adviser who will use the latest in technology to guide you.
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If you have made the decision, you will have to decide how you’ll create a comfortable income. Most rely on pensions as a main source of income, but they might not be accessible. Cash savings, ISAs and investment portfolios can also be relied upon.
Cash-flow planning and understanding will be necessary as you move from having a regular income to living off constantly depleting savings. It will help you realise the challenges, and it’s important to understand that longevity plays a major part too.
According to https://www.telegraph.co.uk/pensions-retirement/financial-planning/desperate-dream-retirement-does-save-half-age-method-really/, research has shown that although younger savers can look forward to a comfortable retirement by taking a percentage from their salary each month and putting it into a pension pot, middle-aged people could have more of a problem.
The length of time you’ll invest for and your opinion of risk are part of choosing the right investment for you. Both these elements will change if you want to retire earlier.