Living in Retirement
It’s no secret that people are now living longer than previous generations but the thought of planning for a period of time that may exceed 30 years can be exhausting.
A sound retirement plan is one where you prepare to live a long time and make sure you have enough money to maintain your lifestyle.
The more enjoyable your lifestyle in retirement, the more positive your feelings about retirement will be. How would you feel if your long anticipated retirement didn’t meet your expectations?
You’ll have to consider how you’re going to pay for the retirement that you have worked hard for.
Income requirements are thought to follow a ‘U shape’ in retirement, with the first phase being the most exciting and therefore the immediate focus. This is where people start to enjoy retirement, and the risk is that they get carried away with their spending. Spending then tends to fall as people become a little less active and slow down, but costs may then go up in later life due to health issues, and care may be required.
People should have a plan in place to see them all the way through retirement, not just focusing on the time immediately as they retire.
A pension is a long term investment the fund value may fluctuate and can go down.
Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation