Retirement can feel a long way off….but it really isn’t! It’ll be here faster than you realise, and if you’re in your 50s and 60s now, it’s right in front of you.
My hope is to inspire younger generations to take note and look at their retirement and plan for it now. It doesn’t matter WHEN you want to retire, only that you have the money set aside to do something WITH your retirement, be that travel, help care for grandchildren, or start an epic adventure doing something you love.
The younger you are when you do this the better.
What Does Retirement Mean For You?
So before you press the snooze button and turn away, take a moment to visualise what retirement means for YOU. How old are you when you want to be able to give up work? Because that’s affectively what retirement means. And no it doesn’t mean being a millionaire and owning a private yacht (although if that’s your thing, go for it!).
Everyone’s retirement looks different. Some people call it financial freedom, and others call it financial independence. What they all have in common is that you reach this point when your assets pay for your lifestyle in its entirety and you no longer need to work. The sad truth is, only a fraction of people will do what it takes to get there (if they even understand this concept at all).
In my view, this all starts with your pension from work, because for most people, aside from their house, it’s the only asset they’re ever likely to own.
How To Plan For Your Retirement
Now you have a better understanding of what retirement means for you, you can put a cost to that. How much does your ideal retirement need to sustain it? If you want to travel every few months and go on luxury cruises, then you’ll need more than someone who is planning to travel across the country in a camper van.
Some people persue other activities in retirement; they write books or create businesses, especially if they retire young. Retirement no longer means what it did in our grandparents generation. Retirement should be FULL and ACTIVE for as long as possible.
And WHEN you want to retire can have an impact on how much money you need to set aside for it too.
Use A Pension Calculator
Once you understand the annual sum you need for this ideal retirement, and at what age you want to aim for, you can use a pension calculator with a degree of understanding of what it is showing you. Pension calculators allow you to work out if your current contributions towards retirement are enough. It will show you a monthly income and when you can start collecting the pension.
When you work out yours, what will you find? Will there be a shortfall in what you expect to receive vs. reality? If yes, then you have some work to do, and the earlier you start the better.
Video: How To Top Up Your Pension
The Bottom Line
Whatever your age, retirement matters (assuming you don’t want to be working for the rest of your life of course!). So start getting curious. How much is in your pension? How much do you need it to be? How will you make up the difference?
As always, you can come into the Private Facebook Group and ask in there. We’re a supportive bunch and will celebrate your wins with you!