The Motley Fool

Your Simple Plan For A Winning Retirement

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When Chancellor George Osbourne announced his pension reforms in this year’s Budget, part of the reasoning was to offer assistance to “responsible” savers, he explained. After saving for the best part of their working lives, these people no longer have to worry about getting a raw deal in the annuity market.

Allowing people to withdraw as much of their pension pot as they want, instead of being required to buy an annuity, should encourage more long-term saving. Many, however, don’t know how much they need to put away to see a reasonable retirement income from the age of 65.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Take care of yourself

There’s a gap between the sort of retirement people expect and what they’ll actually get. Financial planning is essential to our wellbeing, but all too few of us understand what it means.

Mention ‘saving, investing, interest and debt’ to the average person — is that a conversation anyone would like having? How about ‘security, stability, comfort or taking care of your family?’ People will willingly avoid anything to do with the former, while at the same time desperately seek the latter. They’re the same thing.

If you want a stream of retirement income for as long as you live, it starts with educating yourself.

It’s not too late

A worker in their 50s can expect to live until 80 and beyond. Rest assured, that’s more than enough time to ensure a happy retirement; but you have to act with purpose. To avoid a retirement nightmare, don’t put off saving any longer.

Because our time horizon is a few decades, what we’re actually talking is investing rather than saving. Investing is about planning an entire future. Saving is for holidays.

Retirement specialist Prudential suggests people retiring this year will need £120,000 and a full state pension to get them through to their 80s. How much, then, will you need to invest?

The retirement you want

Let’s say you’re 50 years’ old, have no debt and earn £40,000 a year. Our expected return on investment is 5% (roughly what UK shares have delivered over time). You’ll need to invest 15% of your income, or £500 a month, to retire at 65 and receive the average expected annual income.

Thanks to the power of compounding, your £500 per month could be worth £130,000 in 15 years. That’s not to say that there won’t be any hurdles, but you’ll be on the right track

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.