The short answer to this question is ‘as early as possible’! In reality, though, most of us don’t get around to giving this subject any serious consideration until we’re in our 40s or 50s.
For many people, this is the time of life when the mortgage is nearly paid off, the children are moving out – or have already gone – and their own future comes into focus. For some, it’s a time that’s looked forward to with anticipation and excitement. For others, it can be dreaded or feared.
However you feel about your retirement, it’s important that you start to think about how you would like your future to look as early as possible. Ask yourself:
- How do I intend to live my life when I retire?
- What do I want to do or achieve?
- What does this mean in terms of my future finances – can I afford it?
The earlier you start thinking about these questions, the earlier you will be able to start planning to achieve your goals.
Brunsdon Financial’s Chairman and Financial Adviser, Brian Morman, suggests a good starting point is to develop a rudimentary budget for your retirement. This will be useful in calculating your target income and can highlight any shortfalls that you need to address. Calculate your current expenditure and then consider where you are likely to save money in retirement and where you may spend more. A clear picture should emerge of the level of income you’ll ideally need to support your desired retirement – in the short, medium and long term.
A generally accepted view is that most people need approximately two thirds of their working life income to live on in retirement. Clearly, the sooner you look at your finances, the quicker you can identify and address any projected deficits.
Your Brunsdon Financial Adviser can coach you through this process and explore your available options. They will help you to articulate your future and will then make recommendations in terms of financial investments that will help to realise your dreams.
The value of investments can fall as well as rise. You may not get back what you invest. Brunsdon Financial is not responsible for the content of third party web sites.
Source 1: http://invescoplansmart.citywirecontent.com/retirement/when-is-the-right-time-to-talk-about-retirement/?utm_campaign=invesco-plansmart&utm_source=citywire&utm_medium=email&utm_content=retirement-rt-article-1
Source 2: Brian G Morman, The Little Guide to your Bigger Future, 2017