Retirement Planning

Retirement
Planning

Our Approach

Our approach is one of getting to know the client(s) looking at their current position and the plans they have in place. Through collating all of this information an assessment can be completed, which I refer to as 
‘The Retirement Planning Calculator’.

The Retirement Planning Calculator

The Retirement Planning Calculator has two aspects: what pension fund size you need/require to enable you to meet your objectives and what you need to invest/save to achieve this based on historic performance data.


A good starting point for Retirement Planning is to look at Retirement Income Planning and the questions below are the starting point.

 

  1. What age would you like to retire at? (You need to be realistic with the answer to this question, paying attention for those who have children,
  2. for university costs and for the majority of us when will the mortgage be paid off.)
  3. What income do you want in retirement? Is it the same as your current income, less or more? The completion of a simple expenditure model for pre and post retirement provides an idea of the essential costs, such as Utility Bills, Food, Car, etc and then the discretionary expenditure, living expense and not forgetting the all important holidays.
  4. How will you fund retirement? The answers vary from pensions, inheritance, selling of business(es), the latter two are risky options. What happens to your inheritance if you parents require care? What is the value of your business and who would buy it?

 

The first step with Retirement financial planning is establishing your current position:-

 

  1. I do this by collating up to date information on your pensions, this is done by an information request to your existing providers.
  2. I establish the level of investment risk you are prepared to take, this is a key factor in creating the Retirement Investment Strategy.
  3. Based on the above - set some realistic goals. Retirement financial planning is about planning to succeed and not to fail by setting impossible goals - this helps you manage your expectations.
  4. Retirement Planning Calculator - complete cashflow modelling which shows what needs to be done to achieve your objectives and how your retirement can look. This allows for adding events such as ‘bucket list holidays/travel, children’s weddings.
  5. Advice on Retirement Planning – would including taking into the above all sources of wealth, such as inheritance, sale of a business and look at the impact of the wealth from these being reduced or not happening at all.

 

Early Retirement Plan

The first step for retirement planning is to complete the ‘Retirement Financial Planning’ exercise for your normal retirement age. 

The next step is to then look at the same exercise for ‘Planning for Retirement Early’ and creating the ‘Early Retirement Plan’. This enables you to understand what additional funding you require to achieve this or alternatively what things need to fall into place to allow for this, such as, a ‘business sale’ or an ‘inheritance'.
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