Things to consider when you’re ten years away from retirement

The majority of people I speak to don’t have a long term financial plan. That could be because I’m a financial advisor, but surprisingly 35% of people don’t have a pension. If you’re nearing retirement, this article is for you.

Some of us are great at planning. But most people (including me) tend to put things off. A lot of the customers who talk to me at Macdonald Wealth have a similar story. Does this sound like you?

‘I’ve got a couple of pensions dotted around.’ 

‘I want to tidy up my investments.’ 

‘I’m getting older and want to sort everything out.’

We’re all guilty of over-relying on our workplace and state pensions. These are great provisions, but they’re not a full retirement plan. 

Most people don’t really sit down and evaluate their plans and their provisions until later in life. I understand that – life gets in the way. 

Table: UK pension statistics

– 35% of the adult population say they don’t have a pension.
– 43% of the population admit they don’t know how much they will need.
– Over half (55%) of people estimate that up to £100,000 is enough to retire comfortably.
– Only 28% of people think they are on track to meet this.
– The recommended amount for a comfortable retirement is £260,000–£445,000, depending on accommodation costs.

Source: Finder

What could you think about, ten years away from your retirement?

If you’re ten years away from retirement, it’s not too late to get your affairs in order:

1. Investigate

Firstly, get a handle on what you have and where it is. 

Perhaps you’re around 50 years of age or older. You might have had a few different jobs. 

There’s a good chance that your pensions are in different locations. Dig out the paperwork and line everything up.

The benefit of doing this before you speak to a financial advisor is that it helps the advisor, and gives you a sense of clarity and ownership over what you have

It also helps you see the total value of your investments. 

This might be a bit of an awakening to you for what you need to achieve.

2. Set a date

Once you’ve accumulated all your paperwork, start thinking about when you need to retire. 

This doesn’t have to be specific. But think in terms of year ranges – 65-67? 63-65?

Try and think about what life might look like for you at that point. Your goals might be:

  • Mortgage paid off
  • Income that covers your outgoings
  • Extra revenue to improve your lifestyle

3. Marry what you have with what you need

Think about whether you want to manage this plan yourself or bring in a professional to help you understand your position.*

An advisor can help you to devise a plan that bridges the gap between where you are and where you want to be. Studies show that financially you’re better off spending money on a financial advisor rather than doing it yourself. 

4. Have a plan

Although markets change, it’s always better to have a plan. With better understanding of your finances and a target in place, you’re more likely to achieve it.

I’ve always worked hard in life to achieve my goals. But as life unfolds, we don’t always meet those expectations. 

Don’t beat yourself up. 

It’s more about the act of trying to do it than actually achieving it. And when it comes to retirement, you’re better off with a plan than without one.

Speak to me about your retirement options:

*The value of your investment can go up as well as down, you may get back less than you originally invested. Circumstances are subject to change. 

Performance from the past or yields quoted should not be considered as reliable indicators of returns. This communication is for general information only and is not intended to be individual advice.