Are you thinking about retiring in 2019 – if so there is plenty to consider in order to make sure that you have enough to support yourself financially? Below are five things to consider.
1. Work out how much you’ll need?
Exactly how much you will need to live comfortably in retirement will depend on your cost of living and lifestyle. Start by looking at what your weekly, monthly and annual outgoings are, including household bills, shopping and even car maintenance, etc. Also take into consideration any luxuries or hobbies that you enjoy and always add extra for emergencies.
2. List all your income sources
Start by listing all of your current assets, this will give you a good idea as to whether you can afford to retire or not. Make sure to include all of your pensions, including any final salary and defined contribution schemes – as well as any personal savings, shares and ISAs, as these will be sources of income during retirement.
3. Accessing your income?
How do you plan to access you savings? If you are age 55 and have a defined contribution pension then there are a number of options including income drawdown, buying an annuity or taking a cash lump sum. You have the option to take 25% as tax free cash with the remainder taxed at the normal rate, it’s a decision not to take lightly so make sure you consult a specialist pensions adviser first.
4. Can you afford to retire?
This is probably one of the biggest questions to ask yourself, the idea of stopping work might seem like a dream move – but in reality it may not be financially viable. One option could be to reduce your working hours if able, that way you can see if you will have enough income to cover general outgoings and luxuries.
5. Get professional advice
Making financial decisions like this requires professional advice. At Pensionlite our advisers have the industry experience and insight needed to help our clients make these important decisions about their retirement and financial future.
If you are looking to retire this year and need some advice then get in touch with the Pensionlite team today.