The Retirement smile

How does your future look?
Jeremy Squibb takes us through the phases of retirement and the income you may need.

Have you any idea how much income you will need through your retirement?
Of course, when it comes to looking at retirement, it's really important to understand how your finances might look.
Because retirement isn't just a day, it's not a presentation of a gold watch or a carriage clock, it's maybe the next 30-40 years of your life.

Most of us don't have the good a grasp on our money, so let's start by looking at 3 questions which might just focus your mind a little bit...

1. How much money do you have on you right now?
2. How much money did you spend last week?
3. How much money will you need when you stop work for your retirement?

This is REALLY important, because if we don't know what we have in our pockets, or what we spent last month, how can you expect to know how to support 30-40 years of life?

The Algebra of Happiness highlights that the biggest cause of inaccuracy in peoples financial plans are underestimating their outgoings - how much they spend each month.

Retirement isn't just straight-line expenditure - there is a retirement smile...

Age 67 - 80 - when you have time, money and health to enjoy life (The Golden Shot Years)
Age 80 - 90 - less able to do as much (The Countdown Years)
Age 90+ either less spending again, or very expensive care home costs and funding (Strike it Lucky Years).

Before starting the financial planning part, it is important to understand how you would like your life to really look...
What would a life well lived really look like?
What are the most important things throughout those 30-40 years, and in particular, those Golden Shot Years - when you've got time, money and health - not leaving it until the end of life, when all is revealed, and the answer was so obvious - you just couldn't see it.

Don't allow life to be revealed to you when it's too late.
Start to take action and plan now, so that you have that retirement smile.