How do you envisage your retirement? Putting your feet up with a good book in the comfort of your snug home – or gallivanting around the world on a later-life Gap Year?
I know what I have in mind (give me a call and I’ll tell you!), but how grim it is when reality bears no comparison to these dreams.
I was struck by a recent report highlighting how OAPs are unfairly penalised by inflation.
According to an analysis by the Institute for Fiscal Studies, a typical pensioner is facing an annual rise in the cost of living of 4.6% compared to a “real” inflation rate for the young of just 2.9% and an average of 3.5% for all age groups.
How can this be? It’s largely down to the fact that the retired are particularly badly hit by the doubling of fuel bills in the past decade. On the other hand, they get little benefit from the recent plunge in mortgage costs because most have already paid off their home
loans. For me this underlines the importance of preparing properly for the financial imperatives of retirement. I’d advise thinking hard
about the two important aspects to pensions planning. Firstly, selecting the right type of retirement pension for your circumstances, and secondly, seeking ongoing investment advice so your pension fund continues to deliver the income you want.
Independent financial advisers can arrange pensions in line with your retirement income expectations, monitor progress and manage their return on investment – all from an honest, unbiased viewpoint.
And just as it’s never too early to start saving, it may be never too late. With the right strategy, that retirement idyll (be it book or beach BBQ) could be within reach.