The pension freedoms have increased the allure of early retirement for many savers who have now been given greater control over how to spend their pot. Many would like to retire early and do something adventurous whilst they are still in good health. Does this sound like you?
While adventures are fun, they do require careful financial planning to ensure they end well. Before retiring, there are a number of questions which need to be answered and probably the most important question is how do you want to spend your retirement and how much will it cost?
It may seem on the surface that you could maintain your desired lifestyle in retirement if you were to retire early but you have to consider the unexpected costs life can throw at you and the impact of inflation. Are you willing to live frugally now in order to retire earlier? Are you prepared for your capital to remain invested and potentially fall in value? These are just a few things that need to be answered and considered when thinking of retiring early.
A report from the Institute for Fiscal Studies suggested that individuals in their 50s and 60s underestimated their chances of surviving to age 75 and spend too much money in the early years. Whereas, individuals in their 70s and 80s overestimated their chances of surviving to age 90 or above and spend too little later on.
You work hard for your Pension and savings throughout your employment in order to enjoy retirement when that time comes, it’s important for the pension and savings to work hard for you also. If you would like to discuss your retirement objectives whether this is retiring early or at state pension age then please do contact the office to arrange a mutually convenient appointment with one of our highly qualified advisers who will be more than willing to help.