Really inspired to retire early?01 August 2019
The glossy magazines for wealth management businesses often depict bright and vivid images of people usually above age 50 wafting along a beach, unscathed by the tribulations of life, without a care in the world. They've made it to the end!
With decades of experience in helping individuals reach their retirement, we know that the reality of retirement, and more importantly getting there, in full or partial terms, is not normally an easy path to travel.
The inspiration to retire is often not positive, the need to stop work or reduce hours can be driven by ill health, redundancy (not necessarily a bad thing and, where applicable, can be worth holding on for!), or simply that the desire to work after 30/40 years of grind has finally taken its toll. For some, the 'rat-race' they endure cannot be sustained without something breaking, usually them. Against the current economic backdrop of a slowing UK economy, all things Brexit, and the possibility of a General Election in the Autumn, many are weary of continuing, and we have seen our enquiries rise on this basis.
Planning an individual's exit from work and the way their money will work in retirement is key to the opportunities ahead. Just knowing that you might be able to achieve retirement for many is a huge relief.
Invariably, the payments of income for making retirement happen are not from one source. It might be pension (annuity or income drawdown), State Pension, Investment income and some consultancy work in the early years. We also often plan for 'gap years', and no, we are not referring to student years. Some clients want to retire earlier than planned, taking higher income in the early years, with the plan that they will supplement income with State Pension income payments at age 66/67.
Remember, the full Basic State pension at this time is £168.60 per week, which amounts to £8,777 per annum. If both you and your spouse/ partner receive the same, this is £17,555 into the household. More can be found here: https://www.gov.uk/new-state-pension/what-youll-get
Whatever your plans are, whether they be skipping down a golden beach hand in hand with the one you love, spending more time with the family, or just getting out of your own 'rat-race', start your pension and retirement income planning early to make sure that you can say, 'I made it to the end!'.
You just have to decide what 'the end' looks like for you, and we will be pleased to help you model your plans and aspirations.
No individual advice is provided during the course of this Blog.
Keith Churchouse FPFS
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.