10 Jan 2020
Have you fallen out of love with your job? Or would you simply like to slow down and take life a little easier? Early retirement may be an option - but it requires careful, long-term planning.
The Duke and Duchess of Sussex shocked the world this week by announcing that they wished to ease up on their public duties and live between the UK and North America. The exact shape this will take going forward is still being thrashed out by the Royal Family.
Several reports have suggested that the couple have grown to dislike several elements of their jobs as frontline royals.
Money is unlikely to be an issue for Harry and Meghan as they plan the next chapter of their life - but could you do the same?
Early retirment is possible for many, but it requires detailed planning and financial discipline.
It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future.
Here are some of the key things to think about when planning how to fund your retirement.
You’ll be surprised at the big difference it can make to your savings if you start saving early. This is because of ‘compounding’.
Compounding is a simple concept. When you invest money you earn interest or income on your capital. Then next year you earn on both your original capital and the interest from the first year, and so on.
It’s the snowball effect – as your capital ‘rolls down the hill’ it becomes bigger and bigger. The earlier you start investing, the more time you have for compounding to take effect.
The closer you get to retirement, the greater the need to preserve your savings and ensure they will last all through your retirement.
This is also a time to consider what changes you may need to make to your investments as you approach the end of your working life.
People are living longer, so you’ll need to make sure your money lasts as long as you do. It’s also crucial to make the right investment decisions now to ensure that over time your money will keep pace with the threat of rising inflation.
Do you know the answers to these questions:
If you can't answer some of these, our advisers can help you get to grips with your pension plans and devise a strategy to make your money work as hard for you as possible.
If you would like to speak to one of our advisers about planning for your retirement, click here.
A pension is a long-term investment. The fund value may fluctuate and can go down as well as up. You may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. This is for your general information and use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice.