According to a new survey by asset manager Abrdn,
- 54% of those aged over 40 feel anxious about retiring
- 61% of those aged 40 to 44 felt anxious
Many respondents said that they felt embarrassed by their lack of knowledge about retirement planning.
Psychologist Dr Linda Papadopoulos, quoted in The Independent said:
“Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement. This could be a concern about how they will fill their time, financial worries or perhaps feeling a loss of identity.”
In the same article, Colin Dyer, client director at Abrdn was more reassuring:
“Planning for retirement early can help alleviate worries and anxiety and people shouldn’t be embarrassed to raise issues they are not sure or concerned about – it’s OK not to know.”
It’s OK not to know
I like that phrase – “It’s OK not to know”. You may not know much about retirement and pensions. Even if you know people who are retired – friends, parents, grandparents – they probably don’t talk about retirement in detail. So, you may simply not know what retirement planning is, let alone how to start.
According to a OnePoll for financial advisers Timeline, a lot of people haven’t a clue about pensions, the core of retirement planning for many. 52% of those surveyed said that they had no idea if they over-contributed to their pension, for example, and 53% did not know how to check if they had a ‘missing’ pension due to changing jobs.
Time to act
Here’s my three-point plan to change all that!
- It’s never too late to learn
In that poll, a shocking 55% of those surveyed thought it was “too late” to start doing anything to help them retire early. Rest assured, it’s never too late, and much of it depends on what you define as “early”! Talk to your financial advisor (or me) about income, assets and pensions, and definitely talk to me about planning for a fulfilling retirement.
- Know your number
Your “number” is how much income you have, and if it will sustain the retirement lifestyle you want. The Pensions and Lifetime Savings Association (PLSA) suggests there are 3 retirement living standards:
- “Minimum – geared towards paying for essentials with all your needs covered.
- Moderate – gives financial security and some flexibility.
- Comfortable – provides more financial freedom and some luxuries.”
The PLSA reckon a current “moderate’ retirement requires around £31k a year for a couple. (That figure pre-dates the recent energy costs rises, btw.) In reality, your number could be radically different – in either direction
- What do you want from retirement?
This is a much bigger question that “How much have I got?” It’s about how you want to spend the next 30+ years of your life. A satisfying retirement is about living each day, not just filling it with activity. In my book, keeping busy is not a retirement goal. Making each day meaningful, even if it’s just relaxing and reading a book or taking an extra-long walk, is a retirement goal.
Take a holistic viewpoint
The key to successful retirement planning is to take a holistic overview of your finances AND your retirement expectations. Putting modesty aside, this is what I do best. I help people see the whole picture, know their number, and define what they want from retirement.
And I can help you do the same. Just get in contact to learn about retirement planning, crunch those numbers, and set out a plan that gives you a sustainable and desirable lifestyle in retirement.
