The good news is that we are living longer. The bad news is that we are living longer and it’s going to cost more for us to retire in comfort.
In fact, there is a double whammy; not only are we living longer but it seems to me that investment returns are falling. Having read the financial press, it’s likely that pension providers will be forced to change the forecasts from 7% to 5%. That is nearly a 30% fall in returns which can significantly affect your families and your future.
Perhaps you are not too worried for yourself, but how about your kids and grandchildren? A third of babies born in 2012 will live to at least 100. It could be they will never get on the housing ladder and you won’t be able to help them because you’ll need the capital just to survive without being a burden.
This is such an important issue that I have decided to offer clients a free retirement review. This is designed to give you a target, a number that you must build in wealth so you can live the rest of your life as you want.
This is not about pensions but your wealth strategy including the equity in your house, business value, ISAs, pensions and other investments. You should be accumulating wealth now to distribute later when you transition into retirement.
My guess is that some of us may need to tweak our plans. This could be to work harder and/or longer, adjust our lifestyle and spend a little less and save more. However, I am sure many will not be able to achieve their number with small tweaks and adjustment; they will need to a more fundamental approach.
However, the good news for them is that business owners have the opportunity to create extra wealth for themselves by improving the performance of their business.
If you would like a free Retirement Review give me a call and I’ll book you in. Or, use our free online review.