When is the best time to start retirement planning?

UK savers looking to the future many be considering the question “when is the best time to start retirement planning?” Preparing for life after a person stops working involves establishing a clear understanding of retirement goals, including the standard of living they seek. It also involves assessing what this might cost, and by examining where their current financial situation is, they can plot a roadmap towards retirement. Financial advisors can be a useful asset to savers looking to prepare for retirement, ensuring they stay on track and suggesting ways that their money can work harder for them.

What are UK attitudes towards retirement planning?

Recent research indicates that over half of UK citizens who have recently entered into retirement would warn the generation after them to plan more, save harder and carefully consider how they access their personal pension pots. When the UK government’s dedicated Money and Pensions Service recently surveyed people of ages 50 to 70 regarding their pensions, it found that respondents overwhelmingly believed that the COVID-19 pandemic and subsequent economic downturn had made it more vital than ever that people planned ahead.

Statistics show that one out of every three older people shelf their retirement planning until around two years before they stop work, or simply do not prepare at all. The research report also uncovered that only around seven per cent of respondents felt completely prepared. While it is never too early to start thinking about your financial situation in the future, many experts believe people should begin putting their personal finances in order when they reach their 50s.

In the UK, there are over 16 million people who fall into the 50-70 age bracket. According to government statistics, approximately three quarters of this section of the population have retirement savings beyond the State Pension.

When asked to comment about how their finances had been impacted by the COVID-19 pandemic, around 36 per cent of respondents commented that they were affected, and approximately 18 per cent had opted to delay accessing their pensions.

What are retirees recommending that younger generations should do?

A further survey by the Money and Pensions Service asked over 700 UK citizens who were either fully or part retired about the financial advice they would offer people who were born in the years between 1965 to 1980.

Around 60 per cent advised they should save more money for their retirement, while 56 per cent warned they would be wise to start financial planning for their retirement earlier. Finally, 41 per cent advised that seeking guidance from a financial professional was the best way to get organised for retirement.

Could you benefit from retirement planning specialists in Chester and Shropshire?

If you’d like advice on the issue of when is the best time to start retirement planning, at Hartey Wealth Management, we can help. The time you start retirement planning is a personal choice, but if you’re ready to start paving the way for a more prosperous future, contact us today for expert guidance.

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