The earlier you plan, the better.
Retirement can seem like a long way off: the sort of thing only someone a lot older (and a bit grayer 👴) needs to think about. Pensions, annuities, defined contributions – surely you can get away with leaving those till you’re in your 60s, right?
This feels like a trick question… You got us. While it may be decades away, planning for retirement while you’re still young is crucial – and future you will be very grateful.
That’s because setting yourself up for a financially secure retirement is a much bigger endeavor than you might imagine. Bumbling around in the south of France and writing your memoirs costs money, after all – and then there’s the grandkids’ birthdays to consider. Without a regular paycheck coming in anymore, you’ll instead need a bunch of cash saved up to fund your well-earned relaxation 🏖
Those retirement savings don’t just appear out of thin air: you’ve got to build them over time. And as we’ll explore in this Pack, the earlier you start saving for retirement, the better. We’ll also look at how you can play it smart by taking advantage of tax-reducing initiatives like pensions. Maximizing your returns means more Malbec – and fewer migraines.
But how can I begin planning for something so far in the future? Obviously you can’t know exactly what your retirement will look like. But we do know two things: it’s fairly likely that you’ll live into your seventies, and it’s fairly likely that you’ll want to quit working before you die. Sure, plenty of things may change between now and then – and that billion-dollar idea you’re sitting on might end up making your pension pot look like pocket change. But putting some cash aside for tomorrow today is only prudent. It may involve making a couple of small sacrifices – but planning for retirement now will make future you much, much better off in the long run 😇
With that in mind, it’s worth working on the assumption that your career will follow its current trajectory – and taking any unexpected events as they come.
To kick us off, then: how do you figure out how much you’ll need to retire?
Note: this Pack contains some specific tips for UK Finimizers – but it’s still worth reading wherever you are.
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With all this volatility, you may want to write that useful old adage down.