While retirement is meant to be a time in your life where relaxation takes priority, planning for retirement is often viewed as a stressful endeavour. In fact, Censuswide research reports that more than three in five people (61%) feel stressed when thinking about their own retirement. In the 25-34 year old group, that number is even higher — nearly three-quarters (74%), but in reality, there is only one age group that feels secure with their retirement plan and that is the over-55s.
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With the cost of living crisis and inflation and interest rates higher than ever, it comes as no surprise that many feel out of their depth. So, how does one even start to prepare for the future when there is so much to worry about in the present?
Planning for later in life
Many people worry about having enough money set aside to live the lifestyle they want during retirement, others will be concerned that they’re not contributing enough to their pension or that it won’t last them as long as they need. Many aren’t even sure when they need to start retirement planning.
The unfortunate truth is that the answers to all these questions will depend on each individual, but the general rule is to start planning and saving as soon as possible and to contribute as much as you can afford.
For bespoke advice, professional assistance is recommended, but no matter what, forward planning can help you feel more in control of your finances and regular reviews will ensure you stay on track for the lifestyle you want in your retirement.
Find out about more about Investments, SIPPs and ISAs – some of the most common financial vehicles used to save for retirement.
Here are a few key considerations when planning for retirement:
Timeline: How long you should save for retirement will vary, but plan to contribute regularly for at least 40 years before retirement. If you don’t leave enough time to save, your contributions will need to increase in order to meet your targets.
Savings pot: Again, how much you need to save will vary, since everyone has their own magic number, but in general, saving at least 12.5% of your salary toward your pension is a good amount to aim for. Don’t forget to include money from your employer or any other sources that will be contributing. Your savings goal should be to accumulate a pension pot of at least ten times your salary, but more modest or luxurious lifestyles may need to be accommodated.
Professional, personalised advice
Employing the assistance of a financial expert during retirement planning is the best way to ensure that you’ll be ready for the retirement of your dreams.
Find out how the advisers at Dental & Medical Financial Services can help you and get in contact with us today.