If you are thinking about retiring in 2025, what steps should you take now to ensure a smooth transition from the nine to five to your well-earned retirement?
I’m always being asked this question by clients, and everyone is different, but my main advice is not to just focus on the financials. It’s very tempting to look at your income sources including pensions, work out a retirement date from there, and plan no further. Then suddenly it seems retirement is upon you, and you have no idea of what’s happening or what you are going to do next.
A holistic overview
Instead, I always advise people to take a holistic overview of everything retirement involves well in advance. Yes, the finances are important, but there is so much more to consider, including:
- What you want to achieve in the next 30+ years
- Do you want to go cold turkey and completely stop work, or still work a bit?
- What do you enjoy in life, and want to do more of in retirement?
- What sort of lifestyle do you want?
- How does your partner and family fit into your plans?
And much more.
Know your number
One of the important aspects of assessing the financial side of retirement is working out your number. This is the amount you need to retire in the lifestyle you want. Would-be retirees fall into three groups:
- Those with not quite enough (yet)
- Those with enough to retire on now
- Those with more than enough
A remarkable number of people fall into the third category, simply because they are not aware of two key factors:
- How much they will really need
- How much they have
This often applies to those with a mix of pensions – private, work, state – and other income sources. They actually have quite a bit more than they will need.
One retiree recently said that it came as a shock to realise his work pension income alone was significantly higher than the average wage in the UK (currently £37,439). He suddenly realised he could afford to spend some of his savings without worry – and very much enjoys his new Mazda soft-top!
What is a “successful” retirement?
What your “successful” retirement looks like is as individual as you are. However, I see time and time again that those who have a purpose in life during retirement enjoy their days so much more. Those with just a ’to do’ list and a favourite hobby just don’t seem to fare as well as those who have taken time planning their retirement, so they can look forward to every day.
It’s all about giving your retirement purpose so it fulfils many of your needs including the social side. It also gives time to give something back to society in general. (They might be one and the same thing for some!)
Take action today
So, what can you do right now to start planning a purposeful retirement?
Talk to me free in your 30 minutes Discovery session.
(That’s an incredibly easy step to take.)
In your Discovery session we can talk through where you are now, and where you would like to be. This forms the basis of an action plan to take you from employed to retired.
You can then take it a step further and book a Retirement Planning Kick-starter session. It’s a 1 to 1 reality check that helps you define what’s important to you in retirement, and how you’re going to make it happen.
Want more detailed help – and fast? No problem. I offer personal 1 to 1 retirement planning and coaching to create a Retirement Game Plan for both your day-to-day retirement and your personalised financial plan for funding your retirement.
You’ll find more details on this page:
Interested?
Just get in touch.
