Now is the perfect time to take stock of your retirement plans. Many of us dream of a carefree retirement, free from financial worries and filled with the freedom to pursue our passions. However, a surprising number of retirees in the UK have expressed regret about their retirement decisions. In fact, a recent survey¹revealed that 40% of the retired population in the UK wish they had done things differently in preparation for retirement.

‍The regrets are varied but strikingly common. Nearly one in five retirees (17%)wish they had increased their pension savings while they were still working, recognising that having a robust financial cushion in place could have allowed for greater comfort and security in their later years.

Additionally,12% regret not making lifestyle adjustments during their working years to save more for the future. Moreover, nearly one in ten (8%) said they would have delayed their retirement if they could turn back time, understanding now that staying in the workforce a bit longer could have positively impacted their financial situation.

These findings highlight the importance of careful retirement planning and the benefits of seeking advice early on to ensure a more financially secure and fulfilling retirement.

Visualise your retirement

This can be tricky to do. But you’re likely to still want the same things in life when you retire: a sense of purpose, social interaction and activities that interest and stimulate you. The difficulty comes in trying to forecast your future finances, so that you can have the retirement that you want. This is where a financial adviser can help.

Do you know your figures?

Many people only review their pensions when they are about to retire, by which time it's too late – it pays to check your figures well in advance.

Do you know what the full State Pension for someone retiring today is? It’s £221.20 per week or £11,502.40 per year. This is dependent on your National Insurance contributions or credits. To check your own circumstances, you can get a personal forecast of the State Pension you’re likely to get here, as well your State Pension age here.

Remember – the State Pension on its own is unlikely to provide you with the standard of living you’d need in retirement. The Pensions and Lifetime Savings Association (PLSA) estimate that the minimum level of income (to cover basic needs and have some left over for fun) for a single retiree is £14,400per year. For a moderate standard of living, an annual income of £31,300 is needed and to be comfortable in retirement, a single retiree would need £43,100per year. The corresponding figures for a couple are £22,400, £43,100 and£59,000 respectively².

Lost pensions?

Part of your planning should be to check for any forgotten pension pots, as losing track of a pension is more common than you think. In fact, research from The Pensions Policy Institute estimated that there were 2.8 million lost pension pots in the UK in 2022, collectively worth £26.6bn³. The government’s Pension Tracing Service, designed to help reunite people with their misplaced pensions, is one helpful free service on offer and can be found here.

We're here to help you plan ahead

These numbers highlight the need to have a plan and seek advice at the earliest opportunity.

We can assess your current situation and help you to plan for your retirement. We'll consider factors such as inflation and investment returns, to predict how your situation might change over time and whether you will have enough money to realise your goals.

When it comes to planning for your retirement, we’re here to help answer key questions like:

·       What are the sources of my retirement savings?

·       Will I risk running out of money later in life if I spend more now?

·       Will I have sufficient funds to retire at the age I want?

·       How would my finances be impacted if I needed long-term care?

·       How can I organise my retirement income to be as tax-efficient as possible?

Remember, the real value in working with us is about the long-term journey of financial planning. Successful planning involves a regular review of your circumstances and adapting to changes over the long term. We’re here to help, please get in touch.

¹ CanadaLife, ² PLSA,³ PPI

The value of investments can go down as well as up and you may not get back the full amount you invested. The pastis not a guide to future performance and past performance may not necessarily be repeated.

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