Achieving your future goals
Posted on Feb 07, 2019
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A recent poll in The Telegraph revealed that 56 is the ideal retirement age, with more than half of 445 readers surveyed saying they want to stop working at that age. Unfortunately, most of us probably won’t retire that early, but having the option to do so would be nice.
When the Government introduced pension freedoms in April 2015, it was hailed as giving us ‘freedom and choice in pensions’. It meant that, at any time after the age of 55, people could draw benefits from their pension plans, without having to retire from work in order to do so.
While ‘freedom’ was at the centre of this plan, it didn’t extend to the State pension – with no chance of benefiting from that, even if somebody decided to retire well ahead of the State retirement age.
In fact, the age at which we can draw our State pension is heading up – to 66 last December and to 67 and then 68 over coming years.
While the lucky few are able to retire comfortably on their personal pension, many people rely on the State pension kicking in before they can think about retiring. This will see people having to work longer than they hoped over the next few years.
If you feel that you won’t be able to retire until you’re nearly 70 and you’d like to step away from the 9-5 before that, then talk to us at The Goodman Partnership. With some careful planning and consideration of your goals in retirement, we might be able to come up with a solution to meet your needs.
Recent figures from Aegon, suggest that for someone aged 60, saving into a personal pension to replace the State pension between age 65 and 66 might cost £138.79 a month for five years, which allowing for the income tax relief bonus from the government, would mean a cut in take-home pay of £111.
For somebody aged 50 (who is currently looking at a retirement age of 67) bridging the gap will cost £85.90 a month for 15 years. Somebody aged 40 will be looking at a proposed retirement age of 68 and will need to put away £71.64 per month to plug the gap.
While retiring at 56 might seem tempting, sometimes people get to that age and decide against it… A recent article on the ESPN website reported that ‘many moons ago’ football manager Jose Mourinho – who was then the Chelsea coach – said that he planned to be safely retired in the Algarve ‘by the age of 55’.
Jump forward to 2019 and Mourinho recently turned 56 and, while currently out of work, says he’s received ‘no less than three offers since leaving [Manchester] United but turned them all down because they didn’t feel right’. Perhaps he hasn’t quite got his retirement finances sorted out…
Whether your future goal is retiring at 55 like Mourinho’s was or sticking it out until 70, we can help you to plan your retirement finances to work around your retirement dreams.
At The Goodman Partnership, we have built our reputation on advising people at or near retirement helping clients to weigh up their options and make the best decisions for their future. Call us on 01892 500600 or visit our "Retirement Planning" page for more information.