16th March 2018

Retirement isn’t just about Pensions

As professional advisers we tend to think purely about financial issue in later life and how to ensure our clients are in the best position from this regard. Even when searching the internet for articles related to retirement, it is difficult to find anything that is not about pensions. Although a pension is essential to everyone reaching retirement age, there is more to retirement and it is often the ‘softer’ issues that people worry about.

The majority of us probably work to live rather than live to work. So, when your clients don’t have to work anymore, there are other aspects they are probably thinking about. Here are some of the questions I would be asking my clients to consider:

Future plans

Do you have a bucket list? Do you have a number of places you would like to visit, or things you always intended to do when you retire? Do you have hobbies you are planning to take up when you no longer need to work every day? 

Even though most people think retirement is easy, relaxing and the rest they have been waiting for, in reality, without planning ahead, this can be a very lonely and empty time. Everybody’s whole routine changes and the people that you used to spend 8 hours a day with are no longer there. Your mind is no longer occupied like it was and this change cannot be underestimated. Having plans in place to implement and look forward to will keep you social, occupied and active.

Health

How is your health now while you are nearing retirement? Do you have any long-term ailments that you are expecting to see degenerate? If so, planning ahead is essential. What are the things you would like to do or see before you no longer can? A trip to see the Northern Lights? A show in London? It is a good idea to make a list of these things and plan when you will do them before your health takes a turn. Too many people find themselves in the position where they pushed their dreams to the back of their minds and are now no longer able to fulfil them.

Living

Is your current home suitable for your future needs?  If you are currently living in a high-rise block of flats or a town house with a lot of stairs, then you should consider how this will affect you in 10 years’ time. Equally, if live in a house that is likely to repairs or renovation work doing, or you can see there being issues with where you live then it is a good idea to think about time scales and costs. How long will you be able to remain where you are? Do you want the stress of selling and moving in old age or would you like to get yourself established now and eliminate future worries?

If you have work that will need to be done to your house, then budgeting for this is also important. It is a good idea to make a list of possible renovation costs you may incur in the future and to set money aside for this right away. 

By spending a little time thinking about how our clients feel about these issues then we may find they will engage with us more when it comes to utilising their savings and investments for later life.

Pensions, Rob Tinsley, Pandora Retirement, Retirement