Can you afford to retire?

84% of Brits don’t exactly love their jobs. So the idea of retirement would be a very attractive consideration. To answer the question, you first need to gather some totals.

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Work out how much you need

Estimate your annual expenditure and multiply that with your expected lifespan. Simply put, the total is the minimum you’d need. However, those of you considering retiring to sunnier shores, with favourable exchange rates and lower costs of living, could lower this total substantially. Beware, though, of hidden issues such as the spiralling costs of healthcare as you get older. Few countries provide free healthcare.

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B. The value of your assets

If you own your property outright, find out the current value of it. The amount of savings you have in the bank, the investments you hold, any other properties or assets in your name, should all be taken into account. Take the total of these and compare it with the total in A. If B exceeds A, give yourself a pat on the back and relax. If not, go on to C.

C. Your retirement income

If you have reached State Pension age and / or can draw on a Private Pension, total this and add this to B. If C plus B exceeds A, then count yourself lucky and think seriously about retiring immediately. If not, keep working.

Unfortunately, planning for retirement isn’t really as simple as ABC. If you’re looking for an independent financial advisor Wiltshire based specialist, Chilvester, can offer expert advice.

A quick web search will reveal many articles about the topic, but the more you read, the more confused you may become. You might say why use an independent financial advisor? Financial advisors will elaborate on target replacement rates, the 4% rule and pension pots, the idea being to help you achieve your retirement target.

Retirement planning isn’t child’s play. Make the wrong choice and you might end up spending the rest of your life worrying about how to make ends meet. If statistics and maths make your head spin, investing a little for a consultation with an independent financial advisor has advantages. With the right planning, you could be on your way to a retirement dream. Without planning, you might find yourself having to keep on working till long after your retirement age.

 

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