Business

After Retirement – The Importance of Planning

While there are many things that impact on the nature of the workplace and public sector pensions in the UK, life expectancy is one of the most pressing. After all, this has increased from 71.13 in 1960 to 81.60 as recently as 2015, placing a significant strain on public sector resources across the board.

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With this in mind, it has never been more important that individuals adopt a proactive approach when planning for their future. Here are some of the steps that can help you to plot a clear course in your retirement:

1. Get Help and Get Informed

We’ve seen a growing level of cynicism shown towards experts in recent times, with anti-intellectualism impacting a number of key votes in recent times.

This is counter-intuitive, however, particularly when trying to plan your financial future outside of the workplace. After all, if you’re sick you should see a doctor, and anyone who wishes to organise, manage and optimise their investments during retirement should liaise with experts such as Tilney.

This will not only enable you get informed and build an understanding of your finances, but it also offers you the best chance of building wealth outside of your state pension.

2. Plan the Details of your Retirement

Not all retirement plans are created equal, as while some want to move abroad or travel the world, others will look to enjoy a quiet and staid life in the country.

These ambitions carry variable costs, so planning out the intricate details of your retirement is imperative. Start by listing your priorities in order of their importance, before creating estimated costings for each one. Then work with a realistic timeline to create an itinerary for your retirement and the amount of money that you’ll need to make this happen.

This represents a key stage of the process, and one that can inform your subsequent investment decisions and the type of assets that you seek out.

3. Finalise your Will

Finalising your will and dictating the future distribution of your estate is a key part of the financial planning process, albeit one that can be emotionally challenging.

This is another area that requires specific expertise, however, as financial planners and solicitors can help you to plan the finer details of your will and estate planning.

These service providers can also help to reduce the tax burden placed on your estate through tactics such as gifting, as when assets are given to beneficiaries at least seven years before your passing they’ll be exempt from any inheritance tax levy.