Top tips on how to plan now for a revolutionary retirement
PUBLISHED: 12:02 18 February 2019
Are you on course for a fulfilling retirement? Property entrepreneur and best-selling financial author Vicki Wusche shows you how to plan now
With advances in medical innovation and ever-increasing intervention, we’re all going to live longer than we imagined - longer than any generation before us.
It’s great news, because it presents opportunities for a whole new life without the financial burdens we have now, but still with all our experience, wisdom and good health. Providing you’re prepared.
The problem is, many of us will out-live our savings and pension provision. Final salary schemes and lucrative pension pots are a distant memory for many people I work with in the Cotswolds.
Most pension calculators assume you will need 40%- 60% of your current income as a pension. If that’s what you’re relying on, you’ll be watching a lot of daytime TV because that’s all you’ll be able to afford.
Imagine that. Paying into a pension for 40 years just to retire broke, bored and a burden to yhour family and the NHS.
But there is something you can do about it – if you start now.
1. Be clear about how you want to retire.
How do you want to spend yours? Traditional retirement is old-fashioned and irrelevant to a fit 65-year-old who might live another 40 years. I’d rather plan for - and have - a non-traditional, wealthy retirement which starts with the four Ms.
Means. Maybe you will want to keep working, especially if you run your own business. And why not? You might retire from one job for another career that is less stressful, more active or sociable.
Multi-generational projects could be created by employers as a transition period for older staff looking to take a step back. Older employees could support graduates or apprentices in return for companionship and expenses? If you’re a business owner, you can action this now.
Mission. Indulge your passion to help. Do you want to solve homelessness in Cotswolds towns and cities or change the way people think about eating meat? This is your opportunity to take your skills and experience into the community for the benefit of others. Working with charities can be incredibly fulfilling.
Memories. Time spent with family, friends, people you care about is precious. You might start a new hobby or travel the world.
2. Create a budget.
Yes, it’s boring, and some find it intimidating, but actually, once you start, budgets are empowering. Knowing the life you want to live and setting your financial target now means your ideal retirement can be a reality - and it might come sooner than you think. Remember, every penny you spend now is one less invested for your future. Yes, enjoy your leisure time, but be single-minded about reinvesting and leveraging your financial resources and preparing for the future.
3. Identify financial resources that aren’t working hard enough for you.
Dig out your pensions paperwork. What will they provide and when? Are your savings earning the interest they could? Is it time to diversify your investments or put some more cash aside?
4. Explore ways you can earn extra money now, while you’re working.
Seek alternative investments which may take time to set up, but are manageable. The residual income can then be saved or reinvested. There are a diverse range of investment opportunities but look for those that offer cash-flow with capital and won’t turn into a full-time job without you realising.
5. Acquire income-generating assets.
This might be property or a business - focus on a secure and tangible way of creating residual income for saving or reinvestment while you are earning.
6. Give yourself time to think.
Step back. Everything starts with an idea - and what if your idea was that you want to make a real difference in the world?
What if during your non-traditional retirement you had the financial and physical freedom to generate the solution to problems we are all facing? Who hasn’t thought: “I could make a better job of that”? What if, because you made a plan, you did not have to work in the way you are now to pay your bills and did a better job of something?
The Wealthy Retirement Plan: A Revolutionary Guide to Living the Rest of Your Life in Style by Vicki Wusche is available from Amazon now.