You may well be. For many, the prospect of retirement holds hopes of relaxation, new challenges, more time with loved ones or travel. Any why not? You’ve worked hard all these years and you deserve it. But are you prepared financially?
A new study has warned that those facing retirement are unlikely to fulfil lifetime ambitions if they don’t prepare financially and reduce outgoings in advance. The study, by pensions advice specialists, Portafina, found that 36% of 55-59 year olds don’t think they are saving enough for their future, despite wanting to retire in the next 10-15 years.
The research revealed that, having spent years focusing on their family’s needs and aspirations, it is only at the age of 62 that many people start to enjoy their own monthly pay packet and concentrate on their own futures, despite having big ambitions for their retirement.
47% of those surveyed hope to travel once they retire, while 20% wish to pay off the mortgage, 17% want to downsize and 15% have more personal goals, such as learning a new skill or craft.
But even with these future goals in mind, more than a third don’t think they are currently saving or have saved enough to fulfil their plans.
For many, income verses outgoings is the biggest barrier. Some individuals cited ill health, lack of help and not having a clear understanding of how much money they should be putting aside, as barriers to saving.
Other big concerns for those approaching retirement are that they won’t be able to pay bills with their monthly pension payments and not having enough money to sustain their lifestyle, let alone fulfil their dreams for the future.
Commenting on the psychology of planning and preparing for the future, Geraldine Joaquim, De-Stress Coach at Mind Your Business, said: “Just thinking about the future is the start of moving you towards the goal. Whether you’re interested in travelling or building a lifestyle business, putting your plans on paper is an important aspect of making them come to fruition.”
The key is in planning; yes, plan your goals and ambitions, but also start your financial planning well in advance. If necessary, seek advice from a registered financial advisor about how best to manage and save your money so that you really can relax and enjoy your retirement when it finally arrives.