Preparing for Retirement When You’ve Reached Your Half Century
When people reach their 50s, they often begin to realise that retirement, in whatever form they decide to take it, suddenly feels an awful lot nearer. If you’re in that age group and haven’t yet given the prospect much thought, now is a good time to start thinking about the years that lie ahead.
When do you envisage starting your retirement? Having an approximate date in mind will help you work out a budget for your later years. Typically, retirees need more money to spend in their active years on things like travel and hobbies. Later in retirement they tend to need less income, with their spending levels likely to increase towards the end of their life if they need residential or nursing care.
Get a pension check
Now is the time to review your pension arrangements to see if they are on track to provide the level of retirement income you’ll need. At this point, if it looks as if you need to save more to reach your target income, you still have a few years in which to step up your contributions if your earnings will allow.
You should also keep track of any pensions you may have accumulated with past employers and take advice about whether it would be in your best interests to consolidate them into just one plan.
It also makes sense to get a state pension forecast, and to check when you will receive it, as the state pension age is increasing to 67 between 2026 and 2028.
There’s a lot to consider in the run-up to retirement; we’re here to help.
If you’re making plans for your retirement and would like some professional advice, then please get in touch.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.