Revisit your planning assumptions and time horizons
Retirement isn’t quite as predictably timed as it once was and the length of time you have to accumulate wealth will be different for everyone. Do you plan to work for as long as possible, retire as early as possible, or do you plan to transition through a different style of work?
As you have fewer years to build the nest egg that you need in retirement, it is worth establishing your goals and drawing up a plan that is tailored to your individual circumstances and objectives.
If you already have a plan, it is important to check that the assumptions are still valid, and that you are on track to meet your goals. If not, you still have time to make adjustments to your plans and your savings.
A good Wealth Planner or Financial Planner can help you establish what matters most to you, plan for various scenarios and help you confidently put this plan into action. For more tips on planning, browse our life moments content on Pensions Planning and Advice.
"Someone is sitting in the shade today because someone planted a tree a long time ago."
Warren Buffett
For illustration purposes only
The animation above illustrates the potential for income growth through efficient financial structuring and a balanced or growth-focused approach to investing. The actual figures achieved will depend on individual circumstances
Maximise pension contributions and clear down remaining mortgages
Again, a Planner can help you balance decisions on how best to allocate your income, and help inform decisions such as whether to maximise pension contributions or clear your mortgage, based on an understanding of your wider circumstances and objectives. Prioritising these will likely depend on a range of factors such as interest rates, economic cycles, where you are with your annual and lifetime pensions allowances compared with other tax wrappers, and also what your other financial commitments are.
Review your investment portfolio and pension performance
Review your pensions and investment portfolios, to ensure your investments are aligned with your risk tolerance, time horizons and investment goals. Mainstream pension plans will often make assumptions on your behalf based on your age, so it is worth checking that these fit with your needs.
Similarly, you might want to review your other investments, especially if they are spread across a range of providers or platforms, to ensure that you are not overly exposed to particular sectors, geographies or individual companies, which can sometimes be less obvious when investing through funds. If you have held investments for a number of years and haven’t been rebalancing allocations within your portfolio, this too can be an area to focus on.
Our Investment Managers offer a range of services and can handle transfers from other providers to consolidate disparate investments under one unified investment strategy.
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Capital at Risk
You may not receive back the same amount you put in when you choose to cash out your savings.
Juggling financial dependents – younger or older
Sometimes referred to as the sandwich generation, there may be a period when you find yourself with responsibilities to help with financial arrangements for aging parents or grandparents, as well as young adult children who are not yet financially independent. This can be a lot to juggle and quite different from thinking about your own affairs and decision making.
We specialise in helping families and individuals of all ages, and can assist with financial planning and advice, managing investments on behalf of someone, as well as estate planning services such as Wills, Powers of Attorney and Inheritance Tax planning.
If your children are about to take responsibility for a Junior ISA that will mature into an ISA, we can also help to facilitate conversations around how this is invested, and what this pot might be able to do for them in the future.
Tax Treatment
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Estate planning and protection for yourself and your loved ones
This period is often a good time to reflect on your own legal arrangements and as well documented in the news, as many as half of UK adults do not have a Will, with roughly a third aged 55 not having a Will in place. [1]
Having a Will, letters of wishes and Power of Attorney drafted can help ensure that in the unfortunate situation that you pass or are too unwell to make decisions for yourself, your wishes for loved ones can be carried out. Alongside this there are also a range of insurance and protection options available to you, such as life insurance, critical illness, income protection and medical insurance.
[1] Source FT Adviser 5 Apr 2023
Getting good financial advice
Taking financial advice is a great way to help you with planning considerations in your 50s and 60s so that you can understand how retirement might look for you and make the most of the savings you have accumulated.
We have teams of Planners and Investment Managers, who can partner with you based on what you are looking to achieve. You can see what some of our clients have to say about us and our Advisers below.
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We have a series of complementary financial "How to" Guides...
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