Are you fully prepared for the world of retirement? To help you plan ahead, here are a few trends to look out for as you get ready for life after work.
Over the last 50 years, the world of retirement saving has changed significantly. People who entered the workplace in the 1990s began to assume greater responsibility for making the pot last through an entire retirement lifetime. This generation will want to know how retirement will look in the future and how to make the best financial decisions.
Firstly, you should seek adequate returns on your investments and work out how much you need to save (and for how long).
Consider whether the stock markets are your best bet. Young people in particular have been drawn to crypto and meme stocks in recent years, but they are risky, so ask whether they are really right for you.
You may wish to opt for long-term investments that indicate steady growth, such as tax-efficient ISAs (Individual Savings Accounts). Traditional investments such as funds or shares are insulated from capital gains tax by being kept in a pension or ISA. It is also worth considering the impact of pension taxation, as unspent pension pots are absorbed into the inheritance tax net.
Some people may instead simply choose to work longer, and we are already seeing statutory pension ages rising, to 68 by 2044 and potentially 70 by 2050. As people live longer, and the number of centenarians increases, societies will likely continue to see rethinking on how we approach retirement.
If you are retirement planning in Cheshire and need expert financial advice, contact local specialist Hartey Wealth Management today.
