A new survey reveals that only a third of us feel like we’re in control of our financial futures. Planning for retirement is something that we should all be thinking about, no matter our age.
Let’s take a look at what the research shows about our attitudes towards financial planning and what you can start doing to make sure your future is secure.
What is retirement planning?
The closer you get to retirement, the more practical this will become. But the main things to consider to plan properly will include:
- When you plan to retire or how old you will be
- How much your living expenses will cost
- Where your income will come from (pensions, investments, passive income)
- Whether you’ll continue to live in your current home, relocate abroad or downsize
There’s loads of exciting paths you can take. But in order to make any of it happen, you’ll have to be in a strong financial position. How much you’ll need in retirement will depend largely on your circumstances and the cost of your desired standard of living.
How do people feel about planning their retirement?
In a recent survey from private and commercial bank Arbuthnot Latham, participants highlighted their current attitude towards retirement plans. The options they could choose from were:
- In control and organised
- Adventurous and energetic
- Cautiously optimistic
- Open to options
- A bit of everything
Interestingly, only 31% of people chose the option of feeling in control and organised. This means only around a third of people have made solid financial plans for the future and know how they will spend their time and money once they finish working.
Is there a correct way to approach retirement planning?
Everyone will approach retirement differently. What works for you may not work for someone else.
What’s most important is that you have some kind of plan and are not heading towards retirement blindly. Steve Pennington, head of wealth planning at Arbuthnot Latham explains the survey results:
“It is reassuring to see that people feel that they are taking control of their future and putting in plans for their retirement. Of course, feeling in control and actually being in control can be different things, especially as events change.”
“We’d advise anyone to review their retirement and general financial plans on a regular basis to ensure they remain fit for the future.”
“No two people are the same, everyone has different aspirations as to retirement lifestyle, where they want to live, and how they plan to use, invest, preserve and pass on their wealth.”
What steps can I take to make sure I’m planning properly?
The main thing is to simply be aware of your circumstances. You don’t have to take any drastic action. Just take some time to completely review your finances and see where you are heading.
Creating a proper budget now is also going to help your current financial situation and give you an idea about how much you’ll need to live once you do retire. The next step is to try and make sure you have a proper understanding of your pensions and how they will operate once you stop working.
Things will change over time. But the sooner you start thinking about retirement planning, the smoother the ride you’ll have as you move towards your desired destination.
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