Retirement: have you given yours enough thought?

September 2020

In years gone by, when you reached the age of 60 you hung up your briefcase, received a gold clock and spent your retirement playing golf or enjoying time with your grandchildren.

But since the worldwide economy went into freefall, retirement is nowhere near as cut and dried as it used to be. There are all sorts of reasons for this; low interest rates hitting savings hard, private pensions being slashed as a result of corporate collapse, company pension pots getting smaller being just three examples. Governments are also struggling for cash, putting state pensions at risk of decreasing in value, while there’s often a simple lack of foresight on the part of the individual.

And let’s not forget that we’re all living longer these days, meaning that we need to save more for our retirement than ever before – something that is often overlooked by the saver. In fact, a recent study by HSBC showed that the average retirement in the UK will last for 19 years, but the average person’s savings will only cover them for seven of those.

All of these factors mean that a large proportion of people of pensionable age are being forced to compromise on their standard of living and work much later in life than they had originally planned. This can be extremely stressful for those who have worked hard all their lives, believing they would enjoy a peaceful and secure retirement in their golden years.

Retirement Planning for Expats in Asia

So what can you do to ensure you don’t befall the same fate? The first thing is to make a start on your retirement plans if you haven’t already. Remember that the longer you can save for your retirement, the more money you will have when you give up work. It’s a false economy to put it off – it will be much more expensive to reach your goal in the long run if you do.

It’s also important to consider the kind of lifestyle you want in your retirement and plan accordingly. This kind of financial planning will allow you to evaluate how much you need to put aside each month to achieve your retirement goals. Make sure you take inflation into account plus unforeseen costs such as possible medical treatment.

Above all, it’s vital to get expert advice on your financial future. BlueStar AMG has a team of professional advisors who can talk you through your personal needs and ensure that your retirement lives up to the idyllic dream of years gone by.