Five key steps to retirement planning

Are you curious to learn five key steps to retirement planning? Join us as we look at some important measures you can take that can help you make your retirement everything you’ve dreamed of.

Why is retirement planning essential?

Working people all across the UK look forward to retirement. No longer needing to work and having more time to yourself can be an attractive option, providing you with the freedom to enjoy your later years with family and friends, or with personal time for spending on hobbies.

You may have major plans concerning how you’d like to use your retirement years, such as renovating your home and garden, purchasing a brand-new car or travelling to far-flung destinations in a series of well-earned holidays.

To get the most from your retirement, it’s important to put some financial plans in place that ensure you have adequate provisions when you no longer receive a salary each month from work. There is no way you will be able to enjoy your retirement years if you have financial concerns, and putting plans in place can make certain you not only have the funds you need to live, but ensure you can achieve all your retirement goals as well.

Retirement planning is essential, and it’s never too soon to start. The earlier you begin, the more prepared you’ll be, and the more secure and prosperous a retirement you’re likely to experience. Read on for some helpful advice to guide your retirement plans.

1. What are your retirement goals?

Step one is to consider your personal goals for retirement. Give yourself a moment and just imagine reaching retirement – picture what it looks like. Try to get an idea of how you might like to spend those years and what you wish to achieve in them. Can you see yourself travelling across the globe, or will you stay local? Will retirement see you remaining in your existing home and refurbishing your property, or will you downsize? Perhaps you fancy becoming part of a new community for retirees.

Listing your retirement preferences is an ideal way to start making plans, as with your goals in sight, you can work out how to achieve them.

2. What is your present financial situation?

After picturing your ideal retirement, step two is to consider your current financial circumstances. This will show you where you are now and will allow you to plot a course towards where you need to be by retirement age. Take a realistic look at your finances – do you have debts, and are you coping with repayments? Are you managing your monthly expenses, and are you investing and saving for the future?

You may find that a financial advisor can be beneficial when answering these questions, as having an impartial and expert eye look over your circumstances can offer a fresh and professional perspective you might not be able to provide yourself.

3. How much do you need for retirement?

After you’ve worked out what you’d like your retirement to be like and assessed your current finances, you can move onto step three and can start to calculate the cost of your retirement. This is an important step, as it can enable you to identify changes that you can make early on to set you on the right course for retirement. As a rule, most people will typically need between 60 and 80 per cent of the income they have before retirement; however, this will depend on your future plans for when you no longer work.

4. What assets and income sources do you have?

Step four is to assess the different assets and sources of income you will have in retirement. Following your calculation of the funds you need, you can find out if you’ll have enough income sources to support your retirement. If you’re starting planning early, study your present income sources and assets and predict what they may look like by the time you retire. These may include home equity, pension pots or even investment portfolios. Downsizing to a smaller property is a common way of funding retirement, as it can free up additional funds to make the most of your retirement years.

5. Are you prepared for the unexpected?

Finally, step five is to anticipate that not everything always goes exactly to plan and to prepare for the unexpected. While it’s easy to make plans for guaranteed income sources, it’s equally essential to prepare for unexpected expenses, so that they don’t cause problems and eat into your carefully calculated retirement fund. While you can’t predict the future, setting some money aside as a contingency plan is always wise and can help with medical emergencies and other unforeseen circumstances.

Experts in retirement planning

If you’ve read these five key steps to retirement planning and are ready to begin, we can help. When seeking professional retirement planning specialists, Chester residents can rely on our team at Hartey Wealth Management. We work closely with our clients, making sure their personal finances keep on track towards a retirement that is not only secure, but comfortable too.

Our expert retirement financial advisors can be counted on make sure your money works a little harder for you while offering unbiased and specialist advice on decision making. We understand that effective retirement plans offer greater peace of mind and more freedom to spend your time the way you would wish to, so we devise strategies that plan out your retirement income in advance.

After you retire, we can help you manage your money. Whether you’re looking for protective policies or you’re interested in investments, our advisors are always available. If you’re concerned about tax, we can ensure you can pass on more of your wealth to your beneficiaries when you die, providing you with peace of mind that your financial affairs are well taken care of.

If you would like to talk to our retirement financial advice team now, get in touch today and start making your plans for the future.


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