If you are lucky, you will live long enough to retire and hopefully for a while after. In this newsletter I look at retirement guide points. In the postscript - Police Officers.
Market Commentary
'Good' economic outlook. Rate cuts starting. Global elections ongoing.
Retirement and Staying Alive
I have dealt with clients who have retired over the last 30 odd years and formed my own ideas of how best to handle this, both from a financial and personal perspective; there follow some of my ideas:
Plan in advance
You will need to get used to less; less work, less money - but more leisure and this needs proper planning – it is important to have a written plan in place – not just for financial aspects but also listing things to do and time to be spent.
Train the kids
Very important. Tell them that you will enjoy much less income in retirement; that you have done your bit and let them get to the bar first for a change.
Consult your life partner
You would be amazed at how many partners get to learn of impending retirement only weeks before it happens. Talk it over – you may be surprised at some of the answers (my wife for example does not like me under her feet and will never allow me to retire).
Don’t get divorced
See point above and trust me on this one (although luckily not from experience). Divorce is bad for your financial health (although one or two clients argue that it has improved their quality of life…).
If You are Selling a business
Sell up when you are having a great time and enjoying work instead of waiting until you have had enough - either will transmit to buyers.
Retire in bits if possible
Suddenly stopping work is not good for you is my conclusion; think about cutting down gradually over the last few years. Maybe take a little part time job.
Have purpose in life and leisure
Really important. I see many clients who have no idea of what to do with their time and in my experience, these are the ones that deteriorate by dying early or going around the twist. Plan and keep busy.
Stay healthy
No point in working hard for years and then your body fails. I exercise most days – just walking the dog is a starting point.
Work out your expenditure
Especially important if you currently run your own business – most business owners enjoy some subsidy from their firms. List regular and one-off bucket list items.
Work out your income
Net of tax and project forwards over several years.
Don’t be a Micawber
Compare your income and expenditure; it is at this point that you might need someone like us to help you with crystal ball gazing about inflation, interest rates, taxation etc.
Consider death and taxes
Both will happen. See our newsletter on the subject of saving Inheritance Tax (IHT).
Summary
Get this stuff right and it might help you to live longer and enjoy your retirement.
p.s.
When you were younger Dad, were you in black and white? This was a comment from one of our kids some years ago. Police officers do look younger to me now but there was a time when I thought that anybody over 40 was over the hill. We are living longer and more healthily in general as well as being more active. Judo and Yoga are my counters to ageing. My recommendation is to keep fit both mentally and physically in retirement – enjoy life and spend the kids inheritance, as they say.
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