There’s a lot to think about when you’re planning your income needs in retirement, and a variety of factors that can influence the amount of income you might need.
Working for longer
The concept of retirement is now more fluid, with workers choosing to continue into their late 60s and even 70s. Increasingly, people are deciding to delay their retirement plans, change jobs or work part-time, and it’s widely expected to become the new norm.
Enjoying life while you can
There’s a general expectation that retirement is one long holiday, but this isn’t universally true. Whilst it’s true that those who opt for early retirement are likely to take more holidays and will therefore need to ensure they have sufficient income to cover this expenditure, the average amount of time spent at home increases markedly in later retirement.
Paying for care
The good news is that we’re all living longer, but it will come as no surprise that as the population ages, an increasing number of us will require care or support in our old age to make our lives easier and more comfortable. This means you will need to think about making some financial provision for care costs.
Passing on capital
Retirees are increasingly choosing to pass money on to their families during their lifetime, rather than on their death. Concerns have been raised that this might be at the expense of their own financial security. If you plan to pass on capital, professional advice will help you assess the impact this may have on your income in retirement.
If you’re making plans for your retirement and would like some professional advice, then please get in touch.
The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.