80% of people don’t know what they want to do in retirement. Are you one of them?

With the State Pension Age being nudged back further and further, many people would be forgiven for thinking that they will never retire.

For most, though, retirement will eventually arrive, and those who want to thrive will need to be prepared. Research suggests that eight in 10 people don’t know how they want to spend their retirement, revealing a lack of proper planning and preparation for the later years in life.

Many will have hopes and dreams of living near the seaside, or travelling to places afar. Whilst these both sound like excellent ways to spend retirement, exactly how can this be done? And how early should you be planning for retirement?

Bucket list

Though it might have a slightly morbid name, a bucket list is a great starting point for planning your retirement. What have you always wanted to do?

Common pursuits on a bucket list may be grand and ambitious, such as:

  • Visiting exotic places, such as Machu Picchu, the Galapagos Islands or Easter Island
  • Learning to play a musical instrument, or speak a new language
  • Taking up a hobby, such as golf, skiing or horse riding

Others may be more modest, but equally as important, providing it makes you happy. These can be simple pleasures, such as:

  • Spending time with family
  • Helping with childcare
  • Visiting old friends

Of course, the list is literally endless. Retirement is different for everybody, but there should be one recurring theme; doing what you want to do.

Working hard for a lifetime, only to struggle financially in retirement is nobody’s idea of fun. So how can you ensure that you have enough money to tick some of the things off your bucket list?

The answer is easy; financial planning.

Making a plan

A financial planner is a type of adviser that helps people achieve their (often long-term) financial goals. This is done by getting to know their client, working out what is truly important to them, and ensuring that they are on the right path to achieve their goals.

Financial planners can allow you to plan various points ahead, using cash flow forecasting tools to show you directly how certain actions and expenses in the future may affect your savings, income and other personal finances. This can be invaluable, protecting you from financial difficulties in the future if you are thinking about helping family members out with things such as house deposits, or giving gifts.

Once you have worked out where you are financially, and where you’d like to be, a financial planner can help you to get there by advising you on a number of things, such as:

  • Pensions
  • Investments
  • Taxes
  • Estate Planning
  • Savings

When you finally retire, this planning pays off, resulting in a happy retirement (or, going back to the bucket adage, more things ticked off your list).

How valuable is advice?

Not many people feel prepared for retirement. This is arguably due to a combination of not knowing what to do once it arrives, and feeling like it’s too far away to worry about.

Taking professional advice can ease these feelings; ideally sooner rather than later. In fact, research from Unbiased shows that the earlier the age when first seeking advice, the more prepared for retirement the person is, with:

  • 71% of 18-24 year olds feeling well prepared
  • 52% of 25-34 year olds feeling well prepared
  • 41% of 35-44 year olds feeling well prepared
  • 39% of 45-54 year olds feeling well prepared

It doesn’t just stop at feeling more confident about retirement. On average, people who work with financial advisers boost their assets by £41,099 (Source: International Longevity Centre), allowing far more to be done in retirement.

For more information about making the most of your retirement, please get in touch using the phone number at the top of the page.