13 December 2024
general
After many years of working hard and saving carefully, you might be looking forward to your retirement date. But how long will you need to wait until you can finally embark on that exciting next chapter?
Research suggests that many Brits think they may need to wait longer than they’d like to. In its 2024 Retirement Report, Scottish Widows shares that 54% of future retirees believe they’ll have to work, on average, for seven years longer than they’d like to before they can retire.
Fortunately, by working with a financial adviser, you could make your dream retirement date a reality. Read on to find out how we can support you and give you the greatest chance of being able to finish working when you want to.
The onus is now on individuals to prepare for their own retirement
The Scottish Widows report sheds light on how working-age Brits feel about their retirement preparation. Sadly, many aren’t confident they’ll be able to retire when they’d like to. Results showed:
The report shared that, over the past 20 years, the onus has shifted from the government and employers to individuals to prepare their own retirement income. But, it also shares that many individuals aren’t taking on the mantle of this responsibility.
This is part of the reason why many are likely to struggle to afford the minimum standard of living after they finish working, or may need to stay in work for longer than they’d like to.
The report recommends taking an active role in preparing for retirement and saving into your pension to ensure you can achieve your long-term goals. One way you could do this is by consulting a financial adviser for guidance.
People who take financial advice expect to retire 3 years earlier, on average, than those who don’t
Financial advice isn’t just about accumulating wealth – it can also help you to achieve lifestyle goals in a time frame that suits you.
Standard Life reports that people who take financial advice expect to retire, on average, three years earlier than people who don’t, at age 66 compared to age 69.
Additionally, the report shares that advised clients feel more confident about their ability to maintain their preferred lifestyle for longer. Advised clients believe they will be able to fund their preferred retirement lifestyle for 23 years, on average, compared to 17 years for non-advised clients.
The findings of the Scottish Widows report may feel daunting. But, by working with a financial adviser, you can take control of your financial future and give yourself the greatest chance of making your retirement goals a reality.
Your adviser can use cashflow planning to help you understand how to achieve your retirement goals
When you work with one of our advisers to plan your retirement and grow your wealth, one of the tools they can use is a cashflow forecast.
A cashflow forecast is an illustration of how your net worth may change over time compared to your income needs. This could help you to see whether your savings and investments are on track to be able to support you at each stage of your life. You could also identify any potential income shortfalls before they happen.
Your adviser will enter data about your current income, expenditure, assets, and liabilities, as well as your anticipated retirement date and income needs in retirement. They also enter assumptions about investment returns and inflation to see how your wealth could grow relative to the cost of living.
The resulting graph provides an easy-to-read snapshot of how your finances are likely to shape up in the years and decades ahead. By tweaking some of the data – such as your retirement date – your adviser can model different scenarios and decisions to see how they affect your ability to achieve your goals.
This incredibly valuable tool means you can make an informed decision about how to save for your retirement. By revisiting your forecast with your adviser on a regular basis, you can tweak your plan based on new information or changes to your circumstances, so that you remain on track for achieving your goals.
Get in touch
At J Edward Sellars, our advisers are here to support you in achieving your dream retirement. Email enquiries@jesellars.co.uk or call 01934 875 919 to find out more about how we can help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate cashflow planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
