It is never too early to begin thinking about retirement, because the sooner you start to plan, the bigger the nest egg you can build. There is a lot to consider; from what you want to do with your retirement to how much money you will need.
Unless you work in the financial advice sector though, it is normal to be unsure about what steps to take. So, read on if you are wondering “what is the first thing you should do when planning for your retirement?”
What do you want from retirement?
Having a clear idea of how you see your retirement playing out has to be the first step. That is because you cannot possibly start to make up a financial plan for your post-working life if you don’t know what you want to do and how much money will be needed.
For example, if you see your retirement involving lots of travel abroad – or even a permanent new life in another country – that will require more significant savings and decent income. On the other hand, if you are happy to live quite modestly, a simpler plan and smaller income will suffice.
Who should you talk to?
It is a good idea to talk to family members about your ideas for retirement, as they will be affected by them. However, establishing whether they are realistic based on your savings and projected income is something where you will need help from retirement planning specialists in Chester, or wherever you live, to make an informed decision.
This will involve looking at all available income streams and measuring those figures against what you will need to achieve your retirement dreams.
There are a number of potential income sources following your retirement:
Pensions – either a contribution or a benefit pension. The latter pays a fixed amount each month after you retire, while the former builds up and can be accessed from a set date.
Investments or savings – you may have other savings aside from your pension that you can draw on, or investments such as property that can keep providing an income after retirement.
A home – this can aid your retirement pot if you sell and downsize or if you rent one of the rooms out to earn additional income.
Hopefully, this has been a helpful introduction to retirement planning, but speak to the specialists here at Hartey Wealth Management for more help.
