Retirement should be a time of relaxation and enjoyment – not one of stress. But all too often, retirement planning mistakes result in money worries instead of golden years. At Narrative, we guide families across London and the UK to avoid these errors and build a confident retirement plan. One of the most common mistakes is:
Underestimating your retirement needs
Expenses will drop when you retire, but not significantly. Although you’re no longer paying for a commute or a pension, you’ll still have costs such as house maintenance and potentially later life healthcare to pay. One of the ways of avoiding pension mistakes like this is to use an online pension calculator to get an estimate of your income needs. Remember to include inflation and lifestyle aims to get a realistic outcome. If you need assistance with these calculations, you’re welcome to contact us.
Starting retirement planning too late
The earlier you start planning for retirement, the easier it is to build up your retirement pot. If you wait until your forties or fifties, you’ll have to save more each month to catch up with someone who started in their twenties. Start early get into good habits. Compound interest will do the rest.
Failing to keep track of your pensions and savings
Are you aware of all your pensions and how they’re performing? If the answer’s no, you can’t carry out accurate retirement income planning. The key is to have a good view of all your pension pots and savings at all times. You may want to invest more (or less) cautiously. The most sensible option is to sit down and review your pensions with a proven expert to make sure they are working as planned.
Forgetting to plan a retirement legacy for your family
If you want to pass on assets to your loved ones, you’ll need to think about family retirement planning and seek out specialist intergenerational retirement advice. With this expertise, you can increase your knowledge of gifts, trusts, allowances and lifetime planning could make all the difference if you want to leave an intergenerational legacy.
Focusing only on short-term retirement goals
There’s more to preparing for retirement than saving up money. You need to see the bigger picture, which may include ill health or the need for a retirement home. Once you’ve reviewed your retirement needs, you may need to switch funds or pensions to make sure they’re aligned with your new set of long-term aims. If this seems complicated, rest assured that our professionals can support you through the process.
Planning your retirement the right way with Narrative
Long-term retirement planning is not a task to be tackled alone. You need more than retirement planning tips to organise your finances. It's best to seek out an expert who will understand your needs and help you navigate the complex pensions domain.
Ready to avoid costly retirement mistakes?
Speak to Narrative today.