When it comes to retirement, it pays to start planning early. Many people, particularly those in the early stages of their career see retirement as being a long way away and not something they need to think about for years. True, they have decades to work before they retire, however to retire comfortably, it is vital to start planning for your life of leisure as soon as possible. Most people start thinking seriously about savings and investments in their late 30s and by this stage it can be hard to save; credit cards and loans drag savings down, on top of other financial responsibilities that go together with owning a house, marriage, children and caring for elderly relatives.

The importance of planning for retirement is further emphasised when looking at research conducted at the start of 2018 by the Centre for Economics and Business Research, and Old Mutual Wealth. This showed that 45% of 50 to 75-year-old UK residents are worried that their pension pot will not last them in their retirement. Furthermore, it concluded that 66% did not have enough pension savings and worried they could not retire at 65. All this is concerning, particularly when we see from the study that 86% of employees want to retire at or before age 65. The study also highlighted that 37% of people when wanting to access their pensions savings, were unsure when and how to do so.

Myth vs. Reality:

I'm not old enough to be paying into pensions: The main thing to understand is that although you are not retired yet, this does not mean there is no need to plan well in advance for your retirement - this should happen decades before you retire. It's not about hanging up your boots next year, rather saving for your own golden years (a few decades away) when you stop earning a salary.

Family Support/External Support: Although it is important to have a strong family network and support, most people would prefer financial independence in order they are not necessarily burdening future generations who will have their own responsibilities and commitments.

I won't need much in retirement: This is simply wishful thinking. Many of your financial responsibilities will reduce as hopefully your mortgage will be repaid and there will be less call on the bank of Mum and Dad. But what about your own living expenses and health - you will have worked around 40 years - retirement is payback time when you get to enjoy your leisure time. This isn't cheap!

We are all living longer.

The reality is that you will incur more medical costs and possibly require either help at home or residential care. Although we all hope to have many enjoyable and active years in retirement before health concerns become an issue

As we all know life tends to throw us a curve ball now and then; unforeseen illnesses, the financial needs of your dependents, and many other unseen factors can affect your financial wellbeing. Most people would much rather approach retirement confident they know where they are financially and what level of income they can expect.

This is where we can help by sitting down with you and explaining "how it all works" and reviewing everything that will help you plan for a long and happy retirement.

Find out how we can help you and if you would like to arrange an initial free no-obligation meeting you can do so by calling us on 0141 572 1340 or by emailing enquiries@mccreafs.co.uk.

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