Simple Retirement Planning

We all want to have a fantastic retirement, right? I know I do — saving for your retirement truly is one of the most important financial goals you should be focusing on right now. But, when exactly are you going to retire? Regardless of whether you want to retire young or set your mind on the typical 65 target, make sure your finances can meet the expectations of the retirement you want to live.

We are an ageing population. Meaning? Our life expectancy is longer, therefore we need to financially support ourselves in retirement for longer than we used to. Many people I’ve spoken to want to retire at 55(!), but with more of the population living into their 80’s can they afford to support themselves for almost 30 years, let alone have the retirement we all dream about? Retirement ages should reflect the modern lifestyle and the population living longer, but it seems to have lagged behind — Millennials, I’m looking at you.

State Pensions aren’t quite cutting it. There’s no questioning that paying into government and employee schemes, like National Insurance, is a great way to build your retirement income, but that alone probably won’t give you the lifestyle you want. Pension pots aren’t going as far as they used to – could you live on just over $10,000 a year? Personal saving plans for retirement has become all the more important; thus, long-term financial planning playing even more of an important role.

You’ll probably work later in life, maybe even part-time in your retirement. Many baby-boomers and soon-to-be retirees are facing this issue, finding that retirement savings and support systems in place just aren’t enough to get them by. Some just don’t want to fully retire – you don’t have to and there are many benefits to keep working in retirement.

$1 million isn’t enough any more. Sounds great, right? One million saved up! Break that down into the years you may end up living into retirement, withdrawals for the lifestyle you want to live in your golden years and the effects of inflation…it simply won’t get you far in this day and age.

So, What Should We Do?

What is painfully apparent nowadays is the importance of self-funding your retirement, rather than an over-reliance on external support, in a world of longer life expectancy, rising living costs and desired living standards. Needless to say, saving sooner really is the better and you will reap the benefits over the long-term. However, if you’re nearing retirement and worry you won’t have enough saved up for the life you want, it’s time to think about re-balancing your finances, looking to carry on working full/part-time later in your life, or shorter-term savings plans to maximise your savings and finances right now.

The savings discipline is something you will have to live by – but if you’re not sure what your next steps are, it’s best to go and talk to a financial planner (like us) who can assess your current situation and help you find the next best steps for your situation.

Simple Savings for Retirement

1) Regular Savings Plan. Start putting away money each month in a private plan, reaping the benefits of compound interest and time in the market over a long-term period, 15 years or more. This can be a couple of hundred dollars a month, but the real discipline is to continue the contributions and not to make any withdrawals. Explore the best options for your savings – you want to beat the pitiful bank’s interest rates and inflation, so look at what is available onshore or even offshore, especially if you are an expatriate. Speak to an adviser where you are to get a solid plan in place.

2) Lump Sum Investing. Got some money stashed away already? Great! Get that money working for itself through investments, looking at growing your savings over the medium-long term. Create a strong plan with an adviser to make the most of your cash, rather than it sitting stagnant in a bank account and earning negative interest. There are many options available to you, but the advice of a professional can put your money in the best areas for you, keep you disciplined not to lost money by over trading and help re-balance your portfolio when necessary.

3) Near retirement? Get involved in short-term investments. The benefits of early and long-term savings are unrivalled, but if you’re nearing your sunset years and have neglected your retirement planning, or simply want to generate more cash as you near your desired retirement, short-term investments can help bolster your available funds. Speak to a professional on this one, as this can be a riskier area — at the same time, you don’t want to have to work until your death, right? It may mean sucking it up and spending less in the years leading up to your retirement, but it will be worth it in the end. All is not lost!

Retirement planning is a lot more in-depth and more crucial to assess as you near your final working days, especially with regards to pensions planning, so be sure to consider an all-encompassing plan alongside your savings strategies.

Setting an age on retirement is a personal choice and gives yourself a goal to work towards — but make sure you are realistic about your retirement. Make sure that you can financially support yourself during those years, whether this means adjusting your lifestyle to help towards your savings, setting back the age you retire and funding your own savings rather than relying on external support.

Retirement planning is an integral — if not the dominant — part of a solid financial plan, and normally the main long-term savings goal. Be sure to create a well laid-out strategy towards the prosperity of your future and seek a professional planner to help you out along the way.

For anyone looking for any questions, advice, or to arrange a consultation, please email me at

Photo Credit – Article Cover

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