If you’re winding down over the summer, this can be a great time to think about the future. What would you really love to do with your pension pot after retiring? While you’re lying on that sun lounger or dozing in the garden, think about what you enjoy doing now – this could be hobbies, activities, travel. Some of us daydream about sailing around the world, writing a novel or buying a seaside home.
“The future belongs to those who believe in the beauty of their dreams.”
Eleanor Roosevelt
Having a dream is a good start, but making it a reality is another thing entirely. We’ve pulled together a few ideas to get you thinking…
What are your interests?
What do you enjoy doing now that you would like to do more? Or is there something you’re fascinated by that you’d like to have a go at? Many hobbies or interests involve some sort of kit. For example, you might be interested in pottery – if you’re into throwing pots, you might be thinking about owning your own potter’s wheel. You may want to set up a small home workshop. If this is your dream, will it be in your current home or are you likely to downsize in the future? Whether its arts and crafts or cricket you’re into, factor in how large a part your interests will play in your future. This is what your money is there to support and is, sadly, an often-overlooked side of retirement planning.
Will you want to move to a new house?
What are your plans for your current home? You may have already paid off the mortgage so you might make a tidy profit if you sell your house in the future to buy something smaller. Or perhaps you plan to keep your home in the family for the benefit of your children and future grandchildren. Perhaps you have a portfolio of properties in your estate. When did you last value these? A sale of multiple properties could really boost your retirement pot and enable you and your partner to live very comfortably, whether it’s by the sea in the UK or somewhere abroad. But be warned, selling property should be planned carefully so as to minimise the amount of tax you might have to pay.
“The biggest adventure you can take is to live the life of your dreams.”
Oprah Winfrey
Would you like to travel?
Whether its travelling coast to coast in a luxury motorhome, trekking in the Peruvian Mountains, or cruising the high seas – whatever floats your boat. Planning your future adventures can be truly exhilarating. If you’re planning to travel for more than a month, you could consider a base abroad by renting or even buying a foreign property. If you’re planning to travel to various places, consider your accommodation and daily living costs – food, spending money, etc. Remember to work out whether your savings will sustain your chosen lifestyle for a substantial amount of time. After all, you want to enjoy any escapades in comfort.
If your main aim for retirement is travel, with recent “pension freedoms” you might be able to start earlier than planned. You can now draw pension benefits from the age of 55. This could create an opportunity to see more places than you had previously planned, while you’re still earning an income from your salary. Think you can’t afford to retire early? Some of our clients thought the same thing when they first came to us, and in many cases were relieved to find their finances could be structured so they could retire sooner and start working on their bucket lists instead.
After recent announcements that the state pension age is rising to 68 for some age groups (between the ages of 39 and 47), it’s more important than ever to plan for your future. If your dream is to retire early then having healthy savings, including in a private pension plan, is essential. With the right mix of pensions, investments, ISAs, savings, and a sound investment strategy, we’re confident that you will be able to achieve your dreams.
For more information on pensions and retirement planning, please visit our Retirement page.
If you would like to talk to someone about your pension and your retirement plans, then please get in touch to speak to one of our financial planners. We can review your pensions and advise you on how to get the most out of your retirement.
