| Retirement - A New Beginning | | | | realisation of your dreams will keep you positive and |
| Going back about fifty years, retirement was | | | | active and that your stamina will be boosted, your |
| considered to be the short gap between receiving a | | | | energy levels heightened and your mental attitude will |
| gold watch and the last rights! | | | | stay young. |
| Happily today retirement is accepted as the start of | | | | Wealthy - Financial Wellbeing in Retirement |
| a whole new life adventure. | | | | Financially speaking, the 'cost of delay' in terms of |
| With the likelihood that we will retire with all our | | | | retirement planning can be illustrated like this - if a 25 |
| faculties intact and fully functioning and with a good | | | | year old and a 35 year old were to start saving |
| number of years in front of us, we now need to | | | | today for retirement at age 55 and the 25 year old |
| take a little more time to plan our retirement years | | | | invested £300 a month towards retirement, |
| to make sure we get the absolute most out of | | | | the 35 year old would have to increase his |
| them. | | | | contributions to £803 a month to achieve the |
| Whatever your retirement dream - from a home in | | | | same potential returns! |
| the sun, a boat on a river, or simply pottering about | | | | I know, I know, talking about money - especially |
| in the garden - all of these things are possible with | | | | pensions - is the fastest way to send anyone to |
| careful planning. | | | | sleep. But seriously, it's never too soon to take |
| But have you ever wondered why so many of us | | | | charge of the financial aspects of retirement planning! |
| constantly push the practicalities of retirement | | | | And if you're still not convinced, according to |
| planning to the back of our minds while rushing | | | | research out of 100 young people now aged 25, 1 will |
| through our lives complaining about the pressures of | | | | be rich in retirement, 4 will be financially independent, |
| work and dreaming of the day when we can finally | | | | 5 will still be working, 12 will be completely broke, 29 |
| put our feet up? | | | | will be dead, and 49 will be dependent on their |
| What is it that causes this dichotomy in us? | | | | friends, family and charity. That means that of those |
| I think that most of us would agree the two main | | | | who live to retirement, 93% will be dependant on |
| causes are lack of time and reluctance. | | | | friends, relatives and charity! |
| And yet each and every one of us knows how | | | | Scary isn't it? |
| important it is to plan and save for our retirement! | | | | So now that you're ready to start your retirement |
| After all we are quite literally bombarded by the | | | | financial planning (!) here are some important aspects |
| media week in week out with facts about the | | | | that you need to consider. |
| pension time bomb and the fact that many of us will | | | | Your own personal circumstances are unique: consider |
| apparently struggle for the price of a cup of tea let | | | | seeking professional and personalised independent |
| alone a beautiful villa in the sun when we get to 65! | | | | financial advice before taking action - but do so as |
| So, with all that information taken on board what can | | | | soon as possible. |
| we do to make our retirement a happy one? | | | | Consider joining your employer's occupational pension |
| Whether you've got a full 40 years to save and plan, | | | | scheme (if one exists!) or getting yourself a personal |
| or if retirement is just a few years down the road | | | | pension - and the sooner the better! |
| and you're worried that it may be a little late to start | | | | Be realistic about how much you should be |
| any radical pension planning, this three part retirement | | | | contributing towards your retirement - based on your |
| planning roadmap should save you time, remove your | | | | age now, the age at which you hope to retire, and |
| reluctance and cover the three key aspects of | | | | the lifestyle you hope to achieve in retirement. |
| retirement planning - namely our physical wellbeing, | | | | Increase your contributions as your income increases |
| our financial wellbeing and our spiritual wellbeing in | | | | and pay in as much as you can afford while you're |
| retirement. | | | | earning. |
| In other words, read on for some practical tips to | | | | If you're on a lower income you may wish to |
| ensure that you retire healthy, wealthy and wise. | | | | consider alternative savings vehicles - ISAs, National |
| Healthy - Physical Wellbeing in Retirement | | | | Savings or mutual funds for example. These can all |
| Every single day of our lives we grow, we mature, | | | | be accessed prior to retirement if needs be. |
| we develop...and we grow older. | | | | However, consider the tax effectiveness of any |
| And when we're very young we sometimes view | | | | savings vehicle and remember that pension |
| retirement as something that equates to old age. We | | | | contributions generally have a higher rate of tax relief. |
| have images of old people in rocking chairs with | | | | If you have a pension plan already in place but are |
| blankets over withering legs rocking away the last | | | | unhappy with it or wish to change it, know that |
| days of their lives! No need to plan then - just throw | | | | pension surrender or early encashment are rarely the |
| me a blanket and I can do the rest myself! | | | | best options available to you. |
| But as we mature and grow older we soon come to | | | | As you get older, consider topping up your pension. |
| appreciate that there can be a considerable amount | | | | Find out about your State pension entitlements and |
| of time between finishing our working lives and | | | | plan when you want to start receiving your private |
| needing to settle into that rocking chair - and that | | | | pension income. You can access funds from the age |
| that time is ours to enjoy to the full! | | | | of 50, but of course it goes without saying that the |
| And while it is true that the body ages and that no | | | | longer you save, the longer your fund has to mature |
| man can turn back the tides of time, none of us has | | | | and the more likely you are to get better returns on |
| to get old unless we choose to do so! | | | | your investment. |
| Our bodies may age but we don't have to! | | | | Never forget that the value of an investment can go |
| So, there are really two considerations when it | | | | down as well as up! |
| comes to the ageing process and welfare in | | | | Think about the long term practical and taxation |
| retirement - namely the physical aspect and the | | | | issues relating to the receiving of pension income if |
| emotional aspect. | | | | you choose to retire abroad or if you have been |
| The Physical Aspect | | | | investing offshore. If you choose to retire in a |
| As ill health can smite any one of us at any age, we | | | | country not classed as being within the European |
| should consider our physical wellbeing throughout our | | | | Economic Area your State pension (such as it might |
| lives; both from the point of view of prevention and | | | | be) will not necessarily increase in line with inflation. |
| the point of view of cure. | | | | Seeking professional advice is the first step in the |
| Prevention | | | | right direction to finding the right financial solution - it |
| When we actively take steps to encourage good | | | | will save you time and money in the long run and |
| health we are far more likely to enjoy longevity; and | | | | reduce your cost of delay significantly! |
| in taking such action we could make the difference | | | | Is it too late for me? |
| between a happy healthy retirement and an old age | | | | Some people reading this article will agree with what |
| blighted by failing health. | | | | I've written so far and then say - |
| Keep active. Many of us have sedentary lives; we | | | | "Great, but I'm 55 years old already, is it too late for |
| drive to work, sit in an office, drive home and then | | | | me?" |
| sit down to watch the telly. But keeping active should | | | | The simple answer is that it's never too late! |
| really be seen as a mandatory part of our lives, right | | | | You just have to plan differently. |
| through and into retirement. | | | | Being realistic is essential - if you don't have a private |
| While busy lives may make it difficult to find time for | | | | pension, if you have little in the bank and have had |
| set exercise, there are always things we can do to | | | | no great luck on the lottery recently then it may be |
| improve our overall fitness. Consider parking your car | | | | wise to shelve the yacht plans. |
| two streets away from the office and walking the | | | | But taking the popular retirement plan of a house in |
| last ½ mile, take the dog for long walk (he'll | | | | the sun for example, that dream may well still be |
| love you!), buy a bike, go on a walking weekend or | | | | possible. |
| weed the garden. Simply by adding a little physical | | | | Consider North Cyprus or France for example - the |
| activity into our working lives now, we will be pushing | | | | difference in property prices between UK and both |
| back the years and ensuring that we are able to fully | | | | countries often means that there is a good |
| enjoy the freedom that retirement will afford us | | | | opportunity to sell a UK home and buy in North |
| when the time comes. | | | | Cyprus or France and put some cash in the bank. |
| Maintain a healthy lifestyle. Enjoy nutritious food, | | | | Being careful is essential - let's just say that you |
| adequate sleep, avoid nicotine and keep alcohol | | | | discover you can trade your 3 bed semi in for a 5 |
| consumption within sensible limits. | | | | bed villa with a swimming pool and a Jacuzzi. Well, |
| Reduce stress. Everyone suffers from stress | | | | maybe a better deal for you would be to trade in a |
| sometimes, and we are all well aware of the long | | | | for a 2 bed bungalow, leaving a surplus of cash in the |
| term damage stress can do to our health. So, do | | | | bank for further retirement enjoyment - the lower |
| everything within your power to reduce your stress | | | | running costs of a 2 bed bungalow versus a 5 bed |
| levels. And if it is beyond your control to remove the | | | | villa would also mean that your savings could go a lot |
| stresses affecting your life, never feel embarrassed | | | | further. |
| or afraid to seek help. If you can identify the primary | | | | Never give up on your retirement aspirations - just |
| reason for your stress maybe you can begin to see | | | | massage them to fit your financial capabilities! |
| what you need to do to fix it. I know this is so often | | | | Wise - Spiritual Wellbeing in Retirement |
| easier said that done - but please remember it is | | | | According to current research around 74% of the |
| your health and your happiness at stake here and | | | | British population dream about retiring abroad. |
| that has to be your priority. | | | | What with the lure of sunnier climes and the fact |
| Be Proactive. You know your own body better than | | | | that the UK housing market has boomed in recent |
| any one else. Listen to it, and react accordingly when | | | | years enabling people to consider selling up, retiring to |
| it is trying to tell you something. Don't ignore potential | | | | the sun AND putting some extra cash away in the |
| symptoms, recognise them and get them treated. | | | | bank, it is unsurprising really. |
| Cure | | | | But if you decide to move away from your friends |
| In recent years health care costs have risen | | | | and family in retirement, or if your friends and family |
| between two and three times faster than inflation | | | | decide to leave you behind, how will you cope? |
| and naturally enough health insurance has become | | | | Loneliness and depression among the over 50 age |
| more costly at the same time making it seem | | | | group is an all too commonly reported problem |
| altogether too unattractive an option for some | | | | nowadays. The death of a much loved partner, |
| people. | | | | divorce, separation from friends and family or the |
| But while the vast majority of us would never dream | | | | departure of children from the family home can |
| of driving our car uninsured or living without | | | | affect this age group particularly hard. And loneliness |
| household insurance, we do exactly that with our | | | | can often come to those people who do not prepare |
| own bodies! We trust our health to luck and good | | | | for their retirement when they suddenly feel the |
| fortune! | | | | shock of leaving the day to day routine of a job |
| Consider, if you will, the following facts: - | | | | behind, and miss the social contact they enjoyed in |
| - The British National Health Service is stretched to its | | | | the work place. |
| limits with up to a million people on waiting lists at any | | | | While we can't plan to avoid loneliness and sadness |
| one time. | | | | caused by the death of a loved one, we can make |
| - Few other countries in the world offer any form of | | | | sure we have a good network of friends and family |
| 'free' medical treatment, if you are thinking of retiring | | | | who are there with us always. Here are a few tips to |
| abroad bear this in mind. | | | | help you enjoy sharing your retirement and to help |
| - In retirement most people live on a fixed income | | | | you avoid loneliness in retirement. |
| which does not allow for exorbitant and ever | | | | Try and build up strong friendships with lots of |
| increasing health care costs. | | | | people while you're still in your 40's and 50's as it may |
| - As we get older our bodies need more TLC and | | | | be harder when you're in your 60's. |
| fine tuning, and age makes us more susceptible to ill | | | | If you're planning a retirement abroad (whether |
| health and increases average recovery and | | | | overseas or simply in another part of your home |
| recuperation times. | | | | country) know that it can be fun and exciting but |
| These facts show why it is important to consider | | | | also a little bewildering! |
| health care costs when it comes to retirement | | | | Think about the friends you'll be leaving behind and |
| planning. And in considering health care costs and | | | | make sure that you part on good terms! Make sure |
| retirement, factor in increasing health insurance | | | | your friends are aware that you're not ending your |
| premiums if you have insurance. Factor in health care | | | | friendship by moving away, and insist that they visit |
| costs if you are relocating abroad without insurance. | | | | you in your new home - I'm sure they won't object! |
| Factor in the potential need for private treatment | | | | Also, make provision and effort for regular contact |
| 'back home' for serious conditions, and also consider | | | | via email or telephone. |
| the fact that you or your spouse may need long | | | | If you move abroad you'll probably meet many like |
| term, full time care later in life. | | | | minded people who've decided that retirement to the |
| But don't panic! | | | | sun is their dream too. As everyone will be |
| At this point many people panic and decide to do | | | | experiencing similar emotions: from the joy of a |
| nothing. (Guilty?) | | | | beautiful home to the loss of familiarity and close |
| They can only see a potentially huge cost that they | | | | friends: you will have a tremendous advantage in that |
| simply can't afford. But health insurance comes in | | | | everyone will be as keen and eager to meet and |
| many forms. Find a reputable company to advise | | | | make new friends as you are. |
| you, get a second opinion and shop around! And while | | | | Retirees abroad often reflect on how much more |
| you may not be able to afford the 'platinum 5 star | | | | open the people are in their new country; the need |
| package' you may still be able to afford a little peace | | | | to be a part of a new community far outweighs any |
| of mind and an acceptable level of care should you | | | | shyness or reluctance to join in! If you retire abroad, |
| need it. | | | | jump in with both feet and make an effort to meet |
| The Emotional Aspect. | | | | and enjoy the company of the people in your new |
| How come some people seem old at 40, while other | | | | community. |
| people can exude youth, life and vitality that belies | | | | Try learning a little of the language of the country |
| their age? | | | | you would like to retire to- the joy of being able to |
| Presuming good health, I can only assume that | | | | communicate in a foreign language even on the |
| mental attitude is at play here! | | | | simplest level can add a new dimension and fullness |
| So how can we make sure we're the ones full of | | | | to life and one of the best ways to understand any |
| beans in our 80s rather than the ones on tranquillisers | | | | new culture is through language. |
| in our 40s? | | | | Throughout life make sure you keep your family ties |
| Learn to love life! Life knocks us all about sometimes | | | | strong. Stay in touch with extended family, get back |
| - and at times we've probably all felt like we've gone | | | | in touch with long lost relations and remain close to |
| a few rounds with Mike Tyson. However take some | | | | your immediate family if you possibly can. If a family |
| time to consider the good things about your life. | | | | rift has occurred consider being the peace maker - it |
| Make an effort to reflect upon the positive; enjoy | | | | takes a 'better person' and a very strong and mature |
| life's simple pleasures and create a balance that | | | | person to be the first to apologise. |
| always leans towards the positive and not the | | | | And finally - if you do find that you suffer from |
| negative. | | | | loneliness there is no point whatsoever sitting and |
| Keep your mind active! Keep learning and developing | | | | brooding about it. If you do that you will never beat |
| throughout life. Never feel that you're too old to learn | | | | it. You have to be proactive, seek out new friends |
| new skills - it's simply not true that you can't teach | | | | and relationships. Get out of your house. Join a club, a |
| old dogs new tricks! | | | | society, an organisation and meet new people - even |
| Focus on positive emotions rather than negative | | | | if you are not the sort of person who likes to get |
| ones! Negative emotions bring mental and physical | | | | involved or join in - take a chance, you never know it |
| disharmony and ill health. If you dwell on regrets, | | | | might just pay off! Surely anything is worth one try if |
| disappointments or resentment you will be weighed | | | | the result could be the alleviation of your loneliness? |
| down with bitterness and miss out on life. People | | | | The start of a new adventure |
| who can forgive and love will remain youthful simply | | | | Retirement isn't something to fear or dread - it's the |
| because they will have anticipation and excitement in | | | | start of a whole new life with levels of freedom that |
| their lives. And if you don't love or feel loved you'll | | | | you've probably never experienced before! Hopefully |
| quickly start to age and feel lonely. | | | | this article has covered the key points of effective |
| Don't stop dreaming and hoping and longing! Stay | | | | retirement planning for you, and you can follow the |
| future focused. You will find that your motivation, | | | | retirement planning roadmap and secure yourself a |
| desire and anticipation for the future and the | | | | healthy, wealthy and wise future. |