Do you have a life plan?
Have you considered when you are going to retire?
Do you have dreams of what you intend to do and how you are going to fund those dreams?
There are so many things to fund for as we go through life whether it is paying off student debt, mortgages, exotic holidays, school and university fees where often we are starting to do these things later in life hence often being stretched for cash. In addition, employees do not normally stick with one employer and the employers are not so paternal with final salary pension schemes becoming a thing of the past.
Have you considered this and how it can affect you?
Up to half of the population do not know when they want to retire. Many do not work out that it is no fun being fully retired, if your friends still work, and can’t spend time with you during the day. Often a whole new set of friends, hobbies and other interests are required to keep people stimulated happy and healthy. Many go from full time employment straight into retirement and are then surprised that they take a couple of years to adjust to this major change in living.
You might still be many years away from this but there could be ways of adjusting for this over a longer time spell
When you stop living, loving and learning, you start dying, regardless of age, money isn’t the only reason we work. Our jobs also provide a range of social interaction, intellectual challenges and often a sense of accomplishment, achievement, satisfaction and enjoyment.
Have you considered this and built into their future plans?
Life expectancy for a 65-year-old can expect to live until 83 (male) and 86 (female). It would appear that those that work longer last longer, and this would give credence to the view that staying active is better for longevity. It also provides us with a timely reminder that you have got 20 to 30 years worth of living to save up for: Only a fraction of each salary packet for the rest of your working life to fund this substantial period of time.
The earlier you start funding the better taking into account the increasing pressure Government will have with the aging population
The time for achieving financial independence is still directly proportionate to how much effort you’re prepared to put into achieving it. You’ll also have to come to an understanding of what retirement and financial independence really mean from the perspective of your own goals, risk assessments, lifestyle and family choices.
Hopefully these basic facts will help you sit down and talk to those people close to you and build a life plan for yourself.
If it would help you to discuss this with a person totally detached from your own environment to assist you in establishing what you really want going forward excluding the financial aspects initially we have such a service. This caters for such questions as;-
Who do you wish to spend time with during your retirement?
Where would you want to be during your retirement, will it be on a split basis for the sun, staying in your own home etc?
What will you want to do during your retirement?
What will you need to do to prepare for your retirement even though it may be a long time off?
What will be the obvious things you want to do where time has not allowed it during your working life?
What are your wildest dreams and goals that you would like to indulge yourself in?
Who else do you need to consider when drawing up these plans, it might be grown up children, grandchildren etc.
A key part of this programme will be looking at the bigger picture when you want to retire and then chunking this down into key times and activities to help you get there. This will be your plan derived from questions that you might not ask yourself whether it be time, inclination or you have just not considered it before!
Looking back when you are really old what would you have liked to have achieved in the areas of career, family and friends, money, health, passion, personal development, fun and recreation, and physical environment?
How would you score these now?
What do you need to do in the next X years to bring this into line for your long term future?
How will you want to spend your time? (visualize!)
Please note that this service does not cater for the financial planning but by going through this process you will be in a stronger position to talk to your financial advisors. Contact firstname.lastname@example.org if you want a retirement questionnaire to start the process. I am happy to provide the questionnaire free of charge to help you start thinking about what probably will be the biggest transition you will ever make!