We all want to look forward to a happy and fulfilling retirement, but that doesn’t happen by itself. It is the result of careful planning and making the right decisions throughout your working life, so you can have the financial means to enjoy the lifestyle you want and deserve.
But shifting economic sands and events entirely beyond your control means your retirement plans can’t be set in stone. For example, how many of us saw the credit crunch coming in 2008 or the recent cost of living crisis?
According to a new report by the Pensions and Lifetime Savings Association (PLSA), a single person will need £31,300 a year to enjoy a moderate income in retirement. This is £8,000 up on the figure calculated last year. Similarly, the report estimated that a couple will need £43,100 for a moderate income in retirement, up £9,000 on last year’s figure.
What does all this mean for you as you plan for the future, hoping to achieve a real sense of financial freedom in later life?
Well, you need to be prepared to adapt your retirement plans when circumstances demand it. It is so important that you proactively respond to significant economic changes and financial realities, such as the increase in food and energy costs over the last few years, and factor these into your retirement planning.
Societal changes and attitudes are also evolving, so that is something to consider too. For instance, the PLSA also notes that the Covid-19 pandemic has led to a change in people’s priorities, as many of us place more importance on spending time with friends and family out of the home.
Planning for the future can be incredibly complex and overwhelming, and that’s before you consider the possibility of the economic landscape transforming around you. Professional advice on retirement planning is so important, to ensure you can be confident you’re making the right decisions in the here and now, and that you’re in a position to react and make changes if the situation evolves.
