Why do I need a retirement plan?
Why do I need a retirement plan? It all sounds too complicated for me!
This is a question I have been asked after launching The Retirement Planning Project.
The cynics might say that retirement planning is fancy name given to something that is just plain common sense and is a clever ploy for advisers to charge fees.
The more enlightened will know that generally speaking, the more planning that goes into something the better the outcome or the experience.
Think of some everyday things; planning a holiday, managing a project at work or planning a boys or girls night out. The better the planning the better the outcome.
The same is true of retirement – the more you plan ahead, the more financially secure you will be in later life.
You need enough money (income) so you can enjoy yourself
What everybody needs in retirement is enough income so they can maintain their lifestyle and do the things they want to do such as taking more holidays and generally enjoying retirement.
In addition to this, you will probably want to make sure you and your family are financially secure no matter what happens to your personal circumstances or in the financial markets.
Therefore, the important thing is that you have enough secure income, your money is invested wisely and you do the really important things like have an up to date will and arrange a lasting power of attorney – and also, you don’t pay more tax than you have to.
It doesn’t matter how you plan – just plan
How you do this is a matter of choice; some people don’t do much planning ahead and prefer just to muddle by whereas other people do plan ahead and consequently may make better decisions and make better use of their money and end up better off both financially and emotionally.
Even those who just muddle by make plans; it is just they are not conscious of it or are not very good at it.
It doesn’t matter how basic the plan is, everybody needs a plan and by joining the project you will learn how to make the most of your planning opportunities.
It’s not just about money, it’s also about you
You might be surprised to hear speaking about people being emotionally better off but take it from me and I have helped hundreds of people at retirement, you cannot understand the importance of peace of mind and security.
I remember writing an A to Z of pensions and being stuck for Z. I wrote about the Zzznooze factor i.e., sleep at night factor and I was surprised how many people said, “I Want that Znooze factor when I retire”.
Planning makes you better off
Good retirement planning helps you make the most of your retirement savings:
- Make better decisions
- End up financially better off
- Reduces stress and worry
Why don’t more people plan ahead for retirement?
There are many reasons including:
- I can’t be bothered
- I don’t have enough money to make it worthwhile
- It’s too complicated
None of these reasons are good enough. You owe it yourself and your family to take retirement seriously and plan for a financially secure retirement with peace of mind and security.
About the author
William Burrows
William has been involved with retirement options for nearly 30 years, advising clients on all aspects of annuities and retirement income options.
He is a regulated adviser with Eadon & Co He has have many years of practical experience in advising clients about all aspects of pension options at retirement and he is passionate about helping people make the right decisions about their pensions and retirement income.
William also publishes guides including the popular ‘You and Your Pension Pot’ and ‘The Retirement Journey’.
He is frequently quoted in the national press and appears on radio, podcasts and videos and writes extensively on retirement income matters.